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)
"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