Wine Quality and Varietal, Regional, and Winery Reputations: Hedonic Prices for Australia and New Zealand.
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We estimate hedonic price functions for premium wine from Australia and New Zealand, differentiating implicit prices for sensory quality ratings, wine varieties, and regional as well as winery brand reputations over the vintages 1992 to 2000. The results show regional reputations have become increasingly differentiated through time (although less so for New Zealand), In particular, cool-climate regions are becoming increasingly preferred over other regions in Australia. In each country, price premia associated with both James Halliday’s and Winestate magazine’s sensory quality ratings, and with Halliday’s winery ratings and classic wine designations, are highly significant.