Using a large sample of auctions results of prestigious Bordeaux wines, we provide an analysis of the price formation of wine through auctions sales. Estimating an hedonic price function, we identify the most relevant characteristics influencing the price of Bordeaux wines during auctions sales....

The properties of prices, especially with respect to initial conditions related to market startup and unusual shocks to the market environment, are of concern to regulators assessing alternative financial market structures. A natural way to investigate the importance of initial conditions is to...