Description
We contribute to the literature on the relationship between product qualityand market prices in two dimensions. First, we empirically account for endoge-
nous reputation effects. An increase in quality has an immediate positive impact
on product prices but also improves the reputation of a firm, which contributes
to higher prices in the future. Secondly, we investigate selection effects in expert
evaluations. Experts typically evaluate a selection of products only. In the wine
market, we find that sample selection effects are important and conclude that reputation effects are highly relevant particularly for the top wines of a winery
(’umbrella branding‘).
Keywords: experts evaluations, hedonic pricing, wine quality, reputation-effects,
sample selection, umbrella branding
| Period | 31 Aug 2018 → 2 Sept 2018 |
|---|---|
| Event title | 45th Conference EARIE |
| Event type | Unkonwn |
| Degree of Recognition | International |