What Determines Port Wine Prices?
Rui Couto Viana and Lúcia Lima Rodrigues
Journal of Wine Economics, Vol. 2, No. 2, 203-212
Abstract
In this study, we estimate a cross-sectional hedonic price function for Port wines in order to determine the price influence of several Port wine characteristics. Drawing on a large sample of more than 14,000 sales from the biggest Port wine firms we find that market prices can be explained by objective characteristics such as age, type of Port and type of brand appearing on the bottle label and subjective characteristics such as firm reputation. The Port type is the main price determinant.