Experts, Reputation and the Price of Wine

  • Dieter Pennerstorfer (Contributor)
  • Weiss, C. (Contributor)
  • Andreas Huber (Contributor)

Activity: Talk or presentationScience to science


We contribute to the literature on the relationship between product quality
and 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
Period31 Aug 20182 Sept 2018
Event title45th Conference EARIE
Event typeUnkonwn
Degree of RecognitionInternational