The authors developed a price algorithm that provides the most accurate valuation for Bordeaux’s wine futures contracts both academically and in practice. The model specification relies on big data and is selected from more than 8.5 billion alternative models. It uses local climatic information, i.e., temperatures and precipitation, market fluctuations reflected by the Liv-ex 100 index which tracks the prices for the 100 most sought-after wines, and scores assigned by three influential tastings experts: Neal Martin of Vinous, Lisa Perrotti-Brown of Wine Advocate and erobertparker.com, and James Suckling of JamesSuckling.com. Find out more here.
