Hedonic Modelling for Australian Wine

The Australian wine industry has been under the pressure of oversupply for many years. Export promotion appears to potentially serve as an effective strategy to partially address this problem. An Hedonic price function is employed to estimate premia and discounts for various varieties, regions and vintages of Australian wine, within the US retail market. Some preliminary results are presented. These results may be used to develop an optimal allocation of Australian wine to various overseas and domestic markets.