Gibbs, Michael; Tapia, Mikel; Warzynski, Frederic - In: Journal of Wine Economics 4 (2009) 01, pp. 46-61
We develop a simple model of the effects of reputation on prices. An increasing fraction of consumers who are “naive” (less informed about quality) results in a stronger sensitivity of prices to ratings of quality. We then argue that this may be a factor in price dynamics for goods that...