Nine variables are selected in the two Bordeaux equations and six in the Burgundy
equation. It is remarkable that among the nine selected variables in the hedonic price equation
for the Bordeaux I (and Bordeaux II, resp.) sample, only one (or two, resp.) belongs to
the set of sensory variables. In the Burgundy equation, two out of six are sensory variables,
but their effect is considerably smaller than the effect of the objective variables.7 This suggests
that the price of Bordeaux and Burgundy is essentially determined by objective characteristics
(ranking, vintage and appellation) that are easily identifiable by all consumers.
A possible explanation for this result could be that sensory characteristics are only available
through tasting, learning and the reading of guides. For consumers it may then be less
expensive to make purchase decisions primarily on the basis of the information displayed
on the label, which causes most of the sensory variables to be insignificant.