Estimating Supply Functions for Wine Attributes: A Two-Stage Hedonic Approach

A vast body of literature exists on estimating hedonic price functions, which relate the price of wine to its attributes. Some existing literature has employed producer-specific variables such as quantity sold and producer reputation in hedonic functions to potentially capture supply influences on prices. This practice is inconsistent with the original Rosen (1974) hedonic theoretic foundation. To overcome this deficiency, we extend the literature by using the Rosen two-stage approach, employing data from multi-markets for similar wines to estimate inverse supply functions. The application to Australian produced wines sold in different countries demonstrates the importance of a wine's quality and age as attributes in inverse supply functions. Results imply the additional costs of producing better quality and older wines are increased as both quality and age are increased. Estimates also suggest that lower marginal costs for attributes are associated with a smaller producer size and older more established producers. (JEL Classifications: C21, Q11)

Green Premium in the Tokyo Office Rent Market

More than 10 years have passed since studies on green buildings gained attention in the academic and industrial literature. Many studies report the economic value of green buildings, mainly in the U.S. and European markets. An empirical clarification of the dynamics of green premiums has significant implications for future urban sustainability. This study constructed a dataset of Tokyo office rents from 2009 to 2019. We estimated the green office rental premium using a hedonic approach. Our results show that, on average, an office property with a green label gains a premium of approximately 6.5% on contract rents. The Tokyo office market is heterogeneous, and endogeneity is an issue when identifying the green premium. We addressed the endogeneity issue with propensity score clustering. As a result of our estimation, the premium was approximately +5.4% for medium sized-old buildings and +2.6% for large-sized new buildings.

Moral Norms, Adaptive Preferences, and Hedonic Psychology

In a series of important papers published roughly twenty years ago, Professor Robert Cooter developed a comprehensive economic theory of moral norms. He explained the value of those norms, described the process by which norms are adopted, and offered a set of predictions regarding the circumstances under which an individual will choose to adopt a particular moral norm. This brief Article applies behavioral law and economics and hedonic psychology to expand upon Professor Cooter’s path-breaking theory. In particular, understanding welfare in hedonic terms — rather than preference-satisfaction terms — suggests a multitude of further situations in which individuals will justifiably seek to internalize moral norms. The hedonic approach to welfare then further suggests an enhanced role for the government to play in encouraging the adoption of welfare-enhancing norms. Cooter’s theory, combined with modern understandings of welfare and human behavior, thus offers powerful predictive and prescriptive possibilities.

PERBEDAAN ANTARA PENDEKATAN HEDONIS DAN EUDAIMONIS ATAS QUALITY OF LIFE: KAJIAN FILOSOFIS

This study analyzes the differences between the hedonic and eudaimonic approach on quality oflife that his subjective aspect manifested itself in happiness and good well-being evaluated fromthe perspective of philosophy. Tradition of hedonic approach on quality of life as happiness andwell-being can be referred to philosophers like Aristippos, Epicuros, Locke, Hobbes, andBentham. Hedonist philosopher who has perspective generally understand happiness and wellbeing as positive emotional statement that follows satisfaction. Then experience a sense of funand enjoyment is seen as happiness/well being. Eudaimonic approach, which is rooted in theconcept of eudaimonia (happiness) of Aristotle, was found to live a life of contemplation andvirtue in line with the true nature of a person. This approach emphasizes the primacy of justice,hospitality, courage, and recommends that developing one's potential to achieve meaningfulobjectives for yourself and others is a sign of good living. By the method of library research andthe analytic theory, the author underline that the first, eudaimonic and hedonic approach onhappiness and well-being in psychology today has a close relationship with the philosophicalconcept of the hedonia and eudaimonia. Secondly, there is a difference between hedonia andeudaimonia, although there is also a link between the two. Thirdly, though there are differencesbetween the hedonic and eudaimonic approach, but both approaches are an importantdimension to understanding happiness and well-being in a comprehensive manner.