| By: |
Dahlström, Tobias (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology);
Åsberg, Erik (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: |
The purpose of this paper is to characterise the demand for wine. In contrast
to the majority of current research efforts this paper treats wine as a
heterogeneous good with a range of inherent characteristics. Each wine
included in the study is described by twelve variables including, among
others, price, quality, sensory attributes and country of origin. Using unique
data that cover 90 percent of all wines sold in Sweden we conclude that
consumers do recognise quality in wine, that price elasticity is non-constant
and decreasing with price and that consumers put a great deal of weight on the
country of origin of the wine. |
| Keywords: |
consumer preferences; wine; quality; price elasticity; heterogeneous goods |
| JEL: |
D12 D42 |
| Date: |
2009–06–04 |
| URL: |
http://d.repec.org/n?u=RePEc:hhs:cesisp:0182&r=cul |