A hedonic price analysis for the Italian wine in the domestic market

What is it about?

In this article we study the characteristics that determine the price of the italian wine sold on teh domestic market for the period 2007-2008 In particular we assess the importance of label characteristics (that can be inferred from the bottle), chemical and sensorial characteristics (that can be inferred through testing and tasting) and panel judgements. Our analysis shows that a strong market segmentation exists and that price formation is quite different in the large distribution and wine shops, perhaps because of specific characteristics of the consumer that buy wine in the two segments. In the large distribution, the price mainly depends on the label characteristics (the alcoholic content being the most relevant) of the wine sold; other indicators, even when statistically significant, are quite irrelevant. For wine shops the story is rather different: the price depends also on the sensorial characteristics of the wine

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