TY - CHAP
T1 - Predicting the quality and prices of bordeaux wine
AU - Ashenfelter, Orley Clark
PY - 2018/1/1
Y1 - 2018/1/1
N2 - Bordeaux wines have been made in much the same way for centuries. This chapter shows that the variability in the quality and prices of Bordeaux vintages is predicted by the weather that created the grapes. The price equation provides a measure of the real rate of return to holding wines (about 2–3% per annum) and implies far greater variability in the early or “en primeur” wine prices than is observed. The analysis provides a useful basis for assessing market inefficiency, the effect of climate change on the wine industry and the role of expert opinion in determining wine prices.
AB - Bordeaux wines have been made in much the same way for centuries. This chapter shows that the variability in the quality and prices of Bordeaux vintages is predicted by the weather that created the grapes. The price equation provides a measure of the real rate of return to holding wines (about 2–3% per annum) and implies far greater variability in the early or “en primeur” wine prices than is observed. The analysis provides a useful basis for assessing market inefficiency, the effect of climate change on the wine industry and the role of expert opinion in determining wine prices.
UR - http://www.scopus.com/inward/record.url?scp=85059066835&partnerID=8YFLogxK
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U2 - 10.1142/9789813232747_0002
DO - 10.1142/9789813232747_0002
M3 - Chapter
AN - SCOPUS:85059066835
T3 - World Scientific Handbook in Financial Economics Series
SP - 43
EP - 57
BT - Volume 1
PB - World Scientific Publishing Co. Pte Ltd
ER -