We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. We find small demand-enhancing effects of neutral reviews and no evidence of important negative effects from unfavorable reviews. Restrictions on the state-owned monopoly retailer and
the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand. (JEL D12, L66, L81, M31, M37)
Friberg, Richard, and Erik Grönqvist.
"Do Expert Reviews Affect the Demand for Wine?"
American Economic Journal: Applied Economics,
Consumer Economics: Empirical Analysis
Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Retail and Wholesale Trade; e-Commerce