Attributes’ specification of wine indexes: is devil in the details?
CARDEBAT, Jean Marie
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
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Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
CARDEBAT, Jean Marie
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
< Reduce
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Language
EN
Article de revue
This item was published in
Bankers, Markets and Investors. 2020, vol. 161
English Abstract
The dispersion of prices on the fine wines market raises the issue of the wine price index construction and valuation of wine funds. In this paper, we first propose an extended hedonic function to better control good ...Read more >
The dispersion of prices on the fine wines market raises the issue of the wine price index construction and valuation of wine funds. In this paper, we first propose an extended hedonic function to better control good heterogeneity (which is a major source of price dispersion) by encoding auction experts’ comments about the state of preservation of the bottles. Second, we use a multiplicative heteroscedastic model to identify the attributes providing the most price dispersion. Outcomes allow for defining the relevant components of wine price hedonic function, and spurs data providers to develop the information on wine products. This result might be useful for professionals willing to improve their fine wine valuation process and then would improve the fine wines market efficiency.Read less <
English Keywords
Auction prices
Hedonic function
Multiplicative heteroscedastic
Wine
Link to research data