Parker, Wine Spectator and Retail Prices of Bordeaux Wines in Switzerland: Results from Panel Data 1995-2000

This paper considers the effect of Parker and Wine Spectator ratings on Swiss retail prices of thegrand cru classé of Médoc , Graves and St Emilion as well as the most renowned wines ofPomerol in a panel data setting. The application of a two-way fixed effects regression model todata of the vintages 1995 to 2000 of 121 wines leads to the following conclusions: There is clearevidence that WS ratings do not provide additional information for retail prices when we take intoaccount the fixed effects and the Parker ratings. The evidence of a marginal effect of Parkerratings on Bordeaux prices is mixed. We find it for five of the nine appellations, in particular forPaulliac and Pomerol where a one Parker point increase is estimated to lead to a 6-7% priceincrease. This “only” partial price influence of Parker is confirmed by comparing the estimated“chateau” fixed effects for the Médoc estates with their standing in the “old” 1855 classificationand the most recent Parker classification of 2008.