The Role of Individual Risk Attitudes on Old Wine Valuations. (November 2019)

• Record Type: Journal Article
• Authors: Georgantzís, Nikolaos; Tisserand, Jean-Christian
• Is Part Of: Journal of wine economics. Volume 14:Number 4(2019)
• Page Start: 417
• Page End: 426
• Publication Date: 2019-11
• Subjects: auctions, -- risk attitudes, -- wine economics; Wine and wine making -- Economic aspects -- Periodicals; Wine and wine making -- Periodicals; Wineries -- Economic aspects -- Periodicals; 338.476632
• DOI: 10.1017/jwe.2019.43
• Languages: English
• ISSNs: 1931-4361

Abstract

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)