Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices
Agricultural and Food Economics
Asymmetric information, Beer prices, Consumer ratings, Experience goods, Hedonic analysis
© 2016, The Author(s). 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.
Smith, Rachel A.; McKinney, C. Nicholas; Caudill, Steven B.; and Mixon, Franklin G., "Consumer ratings and the pricing of experience goods: hedonic regression analysis of beer prices" (2016). Faculty Bibliography. 2978.