Sébastien Lecocq

What Determines Wine Prices: Objective vs. Sensory Characteristics *

The hedonic technique is applied to wines. In the price equation we include objective characteristics appearing on the label, as well as sensory characteristics and a grade assigned by expert tasters. We have three almost identically structured data sets (two on Bordeaux wines, and one on Burgundy wines). The results are used to make comparisons between two of the most important wine regions in France, and comparisons over time (the two Bordeaux data sets are sampled at different points in time). (JEL Classification: D49.)

Estimation of a hedonic price equation for Burgundy wine

A hedonic price equation and two jury grade equations are estimated for Burgundy wine. The approach is the same as in an earlier Bordeaux wine paper (Combris et al., 1997). The data come from an experimental study that is very similar to the study on Bordeaux wines. The results for the two wine-growing regions are compared and discussed.

Spatial Variations in Weather Conditions and Wine Prices in Bordeaux

The purpose of this paper is to study the impact of weather conditions on prices of Bordeaux wines. Unlike previous studies (based on data from the main weather station in Merignac), we use climatological variables from many local stations. Two models are compared: one where prices are related to Merignac weather conditions, and one where prices are related to local conditions (weather variables measured in the station the nearest to the château). Although a (non-nested) test suggests that the model based on local data is better, the two specifi cations lead to very similar results. This is reassuring news for researchers interested in the relationship between weather and prices, but who do not have access to spatial variations in climate. (JEL Classification: Q19)

The impact of information on wine auction prices: results of an experiment

This paper reports the results of an experimental wine auction. Participants of the experiment were randomly assigned to three rooms. In each room four wines had to be evaluated, but the level of information to which participants had access differed across rooms. After the evaluations, the wines were sold sequentially, by four separate Vickrey auctions with secret reservation prices. We find that certain socio-economic characteristics such as gender, income and consumption habits, have a significant impact on the willingness to pay for wine, while others such as age and nationality, do not. We also find that once individuals have read the label characteristics and extracts from wine guides, the taste of the wines does not have an additional impact on willingness to pay. Conversely, if individuals who have only tasted the wines blindly are informed about the wine characteristics and opinions from experts, their willingness to pay increases substantially.

The allocation of time and goods in household activities: A test of separability

In this paper, we test for the weak separability hypothesis imposed by the household production model between goods and time inputs used in the production of different commodities. Our data come from a French survey which reports both expenditures and time that households devote to some activities. The results allow us to show that the weak separability assumption cannot be rejected only when households are strongly time constrained. In the opposite case, home time uses are found to be nonseparable.

Mandatory labels, taxes and market forces: An empirical evaluation of fat policies.

The public-health community views mandatory Front-of-Pack (FOP) nutrition labels and nutritional taxes as promising tools to control the growth of food-related chronic diseases. This paper uses household scanner data to propose an ex-ante evaluation and comparison of these two policy options for the fromage blanc and dessert yogurt market. In most markets, labelling is voluntary and firms display fat labels only on the FOP of low-fat products to target consumers who do not want to eat fat. We here separately identify consumer preferences for fat and for FOP fat labels by exploiting an exogenous difference in legal labelling requirements between these two product categories. Estimates of demand curves are combined with a supply model of oligopolistic price competition to simulate policies. We find that a feasible ad valorem fat tax dominates a mandatory FOP-label policy from an economic perspective, but both are equally effective in reducing average fat purchases.

The Impact of Gurus: Parker Grades and en primeur Wine Prices

The purpose of this paper is to measure the impact of Robert Parkers oenological grades on Bordeaux wine prices. We study their impact on the so-called en primeur wine prices, i.e., the prices determined by the ch^ateau owners when the wines are still extremely young. The Parker grades are usually published in the spring of each year, before the wine prices are established. However, the wine grades attributed in 2003 have been published much later, in the autumn, after the determination of the prices. This unusual reversal is exploited to estimate a Parker effect. We find that, on average, the effect is equal to 2.80 euros per bottle of wine. We also estimate grade-specific effects, and use these estimates to predict what the prices would have been had Parker attended the spring tasting in 2003.

Explaining the Food Purchases of the Convent-School at Saint-Cyr 1703-1788

The analysis of 85 years of food purchases at the rich, market-oriented Saint-Cyr convent School in the 18th century probes the determinants of consumption, its short-term variations and long-term shifts. Using time-series econometrics, we show that there is no equilibrium relationship between series of consumed quantities, prices and income that would be specific to the long term. Regarding short-term variations in consumption, the estimation of a demand system and the derivation of the corresponding elasticities allow us to show that market prices and budgetary constraints do play an important role, but also that this role remains limited, essentially because economic variables do not make it possible to account for the long-term evolutions. These unexplained long-run shifts suggest an interpretation in terms of structural changes in preferences, confirmed nonparametrically using revealed preference tests, which can be related - but not always - to the main subsistence crises that occurred throughout the century.

Animal Protein and Rational Choice: Diet in the Eighteenth Century

Analysis of the account books of the convent school of Saint-Cyr between 1688 and 1788 reveals the causes of the institutions changing patterns of meat consumption. Although a rational-choice model can explain short-term variations in the schools diet, economic variables alone are not sufficient to explain its long-term variations, as evolving tastes began to infiltrate Saint-Cyrs traditional, aristocratic diet. The unintended side effect of this development was to improve nutrition, which the school managed to do without running afoul of claims to elite status.