infonet-economy

The objective of this paper is to assess the precise impact of status on prices of Bordeaux fine wines. We identify several variables that can be used to model a wine’s status and make use of the coexistence of the longstanding 1855 classification in Pauillac and the very short-lived 1943 classification in Pomerol to examine the effect of status on the wine market. Overall, we show that quality, reputation and status jointly contribute at explaining wine prices. Status-related variables have a highly significant impact on Pomerol wines for which a current classification system is inexistent, while in Pauillac status is subsumed by the 1855 classification.