@article{Castriota:321846,
      recid = {321846},
      author = {Castriota, Stefano and Corsi, Stefano and Frumento, Paolo  Dyno and Ruggeri, Giordano},
      title = {Does quality pay off? “Superstar” wines and the uncertain  price premium across quality grades},
      address = {2021},
      series = {AAWE Working Paper No. 270 (Economics)},
      pages = {25},
      year = {2021},
      abstract = {We use data from Wine Spectator on 266,301 bottles from 12  countries sold in the United States to investigate the link  between the score awarded by the guide and the price  charged. In line with the literature, the link between  quality and price is positive. In a deeper inspection,  however, hedonic regressions show that the price premium  attached to higher quality is significant only for  “superstar” wines with more than 90 points (in a 50-100  scale), while prices of wines between 50 and 90 points are  not statistically different from each other. Furthermore,  an analysis performed through normal heteroskedastic and  quantile regression models shows that the dispersion of  quality-adjusted prices is described by an asymmetric  U-shaped function of the score; that is, products with the  lowest and highest quality have the highest residual  standard deviation. Pursuing excellence is a risky  strategy: the average price is significantly higher only  for wines that achieve top scores, and the price premium  becomes more volatile.},
      url = {http://ageconsearch.umn.edu/record/321846},
      doi = {https://doi.org/10.22004/ag.econ.321846},
}