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JWE-Articles
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Journal of Wine Economics Volume 16 | 2021 | No. 3
»
Willingness to Pay for Wine Bullshit: Some New Estimates

Willingness to Pay for Wine Bullshit: Some New Estimates

Kevin W. Capehart
JEL Clasification: D12, D83, L66
Pages: 260-282
Abstract

As part of a classic article in this journal, Richard Quandt identified 123 wine descriptors that he deemed to be bullshit. In this paper, I examine whether wine consumers are willing to pay any more (or less) for wine if it is described by one of those “bullshit” descriptors. I use three methods to examine that. The first method involves applying a hedonic regression to a dataset of prices and expert descriptions for about 50,000 wines. The second method involves applying a match- ing estimator to the same dataset. The third method involves a stated-preference survey of about 500 wine consumers. The three methods suggest that for most of the descriptors Quandt deemed to be bullshit, most consumers’ marginal willingness to pay for a descriptor is zero or near-zero. Yet, for some of the descriptors, some consumers do seem to have a non-zero marginal willing- ness to pay, perhaps because the descriptors shape a consumer’s subjective experience or because they signal objective aspects of wine.

Kevin W. Capehart

Keywords: expert evaluation, hedonic regressions, matching estimators, stated preference.

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