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Fine Water: A Hedonic Pricing Approach*

Published online by Cambridge University Press:  04 August 2015

Kevin W. Capehart
Kevin W. Capehart*
Affiliation:
Department of Economics, The American University of Paris, 102 rue St. Dominique, 75007 Paris, France; e-mail: [email protected].
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Abstract

Bottles of water vary in price with some priced as if they were bottles of fine wine. This article attempts to explain price differences between over 100 bottled waters included in a guidebook to fine waters by drawing on the hedonic pricing approach, which has been used to try to explain price differences among bottles of wine. As part of that approach, the price of each bottled water is regressed against various characteristics, including those related to its water. Water-related characteristics explain only a small part of the price differences among the bottled waters. Thus, to a large extent, the premium that consumers pay for a more expensive bottled water does not seem to be a premium for its water. (JEL Classifications: C21, Q25)

Keywords

bottled waterhedonic regression
Type
Articles
Information
Journal of Wine Economics , Volume 10 , Issue 2 , November 2015 , pp. 129 - 150
Copyright
Copyright © American Association of Wine Economists 2015 

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Footnotes

*

The author thanks Jill Hindenach, Karl Storchmann, an anonymous reviewer, and participants at the eighth annual conference of the American Association of Wine Economists for comments.

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