Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices
2016
Smith, Rachel A. | McKinney, C Nicholas | Caudill, Steven B. | Mixon, Franklin G., Jr
This study fills a void in the literature by providing the first evaluation of the impact of consumer ratings on beer prices using hedonic methods. Our work is based on a dataset consisting of over 400 beers and includes information on calorie content, alcohol content, user rating, and style for each beer. Our results indicate that a 10-point increase in consumer rating is associated with about a $0.50 increase in the price of beer per unit.
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