Behavioural heterogeneity in wine investments

Adrian Fernandez-Perez*, Bart Frijns, Alireza Tourani-Rad, Jean-Philippe Weisskopf

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review


We introduce a heterogeneous agent model to explain the dynamics of fine wine investments. Our results show evidence of the existence of both fundamentalists – those who trade on mean-reversion towards a fair value – and chartists – those who extrapolate recently observed price trends – in the wine market. Moreover, we document that market participants switch between the two trading strategies, allocating more weight to the strategy that has been the most accurate in forecasting wine index values in the recent past. This switching behaviour can explain the large variations in index values (bubbles and crashes) that are observed in the fine wine market.
Original languageEnglish
Pages (from-to)3236-3255
Number of pages20
JournalApplied Economics
Issue number30
Publication statusPublished - 27 Jun 2019
Externally publishedYes


  • Wine investments
  • Heterogeneous agent models
  • behavioural finance


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