TY - JOUR
T1 - When is a wine a bargain?
T2 - A comparison of popular and regression-based approaches
AU - Oczkowski, Edward
N1 - Includes bibliographical references.
PY - 2015
Y1 - 2015
N2 - Discussions of wine bargains appear frequently in the popular wine press, where bargains are usually defined by quality rating and price thresholds. In this research, we introduce another wine bargain definition, a wine with an actual price less than its predicted price. To predict a wine's price, we regress price on a number of quality signals. Our sample consists of 2450 cabernet sauvignon wines from the states of California and Washington that were reviewed by Wine Spectator magazine. We show that if a wine is a bargain by the traditional threshold definition, it will also be identified as a bargain by our definition. However, our approach finds other wine bargains in categories beyond the traditional one. In particular, we find 'Connoisseur Bargains', 'Third Bottle Bargains' and 'Other Reason Bargains'. In each of these categories, the actual price of the wine is less than its predicted price, but it violates the price or quality rating threshold(s).
AB - Discussions of wine bargains appear frequently in the popular wine press, where bargains are usually defined by quality rating and price thresholds. In this research, we introduce another wine bargain definition, a wine with an actual price less than its predicted price. To predict a wine's price, we regress price on a number of quality signals. Our sample consists of 2450 cabernet sauvignon wines from the states of California and Washington that were reviewed by Wine Spectator magazine. We show that if a wine is a bargain by the traditional threshold definition, it will also be identified as a bargain by our definition. However, our approach finds other wine bargains in categories beyond the traditional one. In particular, we find 'Connoisseur Bargains', 'Third Bottle Bargains' and 'Other Reason Bargains'. In each of these categories, the actual price of the wine is less than its predicted price, but it violates the price or quality rating threshold(s).
KW - Bargain
KW - Cabernet sauvignon
KW - Quality
KW - Quantitative analysis
KW - Wine
KW - Wine quality
U2 - 10.1080/09571264.2015.1037578
DO - 10.1080/09571264.2015.1037578
M3 - Article
SN - 0957-1264
VL - 26
SP - 241
EP - 242
JO - Journal of Wine Research
JF - Journal of Wine Research
IS - 3
ER -