Short communication. Price determinants of Chilean wines in the US market: A hedonic approach

Abstract

A hedonic function relating the retail price of Chilean wine in the US market to a number of relevant variables was estimated. The variables were: quality ratings, aging, grape variety, valley of origin and membership to an association. Estimates for the percentage impact and marginal prices of these variables are provided. The overall conclusion is that variety and location are more influential in the commercial success of wines than quality ratings and aging, suggesting that oenological practices cannot outweigh judgemental errors in these long-term choices.