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The Role of Individual Risk Attitudes on Old Wine Valuations

Published online by Cambridge University Press:  06 December 2019

Nikolaos Georgantzís  and
Jean-Christian Tisserand
Nikolaos Georgantzís
Affiliation:
CEREN, EA 7477, School of Wine and Spirits Business, 29 Rue Sambin, 21000Dijon, France - LEE and Department of Economics, Universitat Jaume I, Castellòn, Spain; e-mail: nikos.georgantzis@bsb-education.com.
Jean-Christian Tisserand*
Affiliation:
CEREN, EA 7477, School of Wine and Spirits Business, 29 Rue Sambin, 21000Dijon, France - Swiss Distance Learning University (UniDistance), Überlandstrasse 12, Postfach 265 CH-3900Brigue
*
e-mail: jean-christian.tisserand@bsb-education.com (corresponding author).
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Abstract

In this article, we report the results of an experiment designed to address the effect of risk attitudes on valuations of aged wines. We find that higher risk taking in the economic domain is associated with a significantly higher willingness to pay for an old wine. Given the increasing interest of consumers and investors in old wines, our results are applicable to the pricing of old wines and to the use of auctions as an efficient willingness to pay elicitation mechanism. (JEL Classifications: C91, D44, L66)

Keywords

auctionsrisk attitudeswine economics

Information

Type
Articles
Information
Journal of Wine Economics , Volume 14 , Issue 4 , November 2019 , pp. 417 - 426
Copyright
Copyright © American Association of Wine Economists 2019

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Footnotes

We thank the anonymous referee and those present at the presentation of this article at AAWE 2019 for their valuable comments.

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