This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Applied Economics
  4. January 2012
  5. Do Expert Reviews Affect the Demand for Wine?

American Economic Journal:
Applied Economics

ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)

Do Expert Reviews Affect the Demand for Wine?

  • Richard Friberg
  • Erik Grönqvist
American Economic Journal: Applied Economics
vol. 4, no. 1, January 2012
(pp. 193–211)
Download Full Text PDF

Abstract

We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. We find small demand-enhancing effects of neutral reviews and no evidence of important negative effects from unfavorable reviews. Restrictions on the state-owned monopoly retailer and the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand. (JEL D12, L66, L81, M31, M37)

Citation

Friberg, Richard, and Erik Grönqvist. 2012. "Do Expert Reviews Affect the Demand for Wine?" American Economic Journal: Applied Economics, 4 (1): 193–211. DOI: 10.1257/app.4.1.193

Additional Materials

JEL Classification

  • D12 Consumer Economics: Empirical Analysis
  • L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
  • L81 Retail and Wholesale Trade; e-Commerce
  • M31 Marketing
  • M37 Advertising
There are no comments for this article.
Login to Comment