Hedonic pricing applied to wine from an Italian grape variaty

Consumers face complex choices when buying wine, a highly differentiated product sold at widely varying prices. This paper aims to provide a monetary valuation of some key credence attributes of wine, such as certifications and quality ratings made by expert tasters. The implicit price of DOC-DOCG certification is of extreme importance. It gives access to a collective reputation and enables a premium price to be captured from consumers. With this in mind, hedonic price estimation was performed on a specific Italian grape variety (Aglianico).