Abstract

Fine wine has several characteristics that differentiate it from other agricultural commodities and beverages that render it a potentially interesting topic for economists. First, the best wines can fetch bottle prices that exceed several thousand dollars. Second, if properly stored, fine wine  can increase in value with age. Third, the quality and prices of fine wines are extraordinarily sensitive to fluctuations in the weather of the year in which the grapes were grown. Fourth, wine is an experience good, that is, a good for which it is difficult to ascertain its quality before consumption. As a result, consumers often rely on ‘expert opinion’ regarding quality and maturation prospects. This article describes the emergence and the unparalleled rise of wine economics since the 1980s to the present time and sheds light on its three main topics: finance, climate change and the role of expert opinion. (JEL Classification: Q1, G11, Q54, L15)

Keywords: wine economics, finance, climate change, expert opinion, machine learning, econometric models

Abstract only. Full article forthcoming.

©2025 Karl Storchmann and Jing Cao. This article is licensed under a Creative Commons Attribution (CC BY 4.0) International license, except where otherwise indicated with respect to particular material included in the article.