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Masset Philippe

Associate Professor

Main skills

Associate Professor

EHL Hospitality Business School
Route de Berne 301, 1000 Lausanne 25, Switzerland, CH

BSc HES-SO in Hôtellerie et professions de l'accueil - EHL Hospitality Business School

Corporate Finance
Wine economics
Portfolio Management

Completed

Asset-light strategies in the hospitality industry: A light-hearted or a right choice?

AGP

Role: Collaborator

Requérant(e)s: VD - EHL - EHL

Financement: HES-SO Rectorat

Description du projet : Over the last two decades many hospitality companies, especially hotel and restaurant chains, have started to pursue an asset-light strategy, which has led to a transformation of the complete industry. This project aims at bringing forward an in-depth analysis of the asset-light strategy and its implication for the industry and its stakeholders. A special emphasis will be put on financial consequences for hospitality companies and the modification of risk-return characteristics such a strategic decision entails.

Research team within HES-SO: Weisskopf Jean-Philippe , Masset Philippe

Partenaires académiques: VD - EHL - EHL

Durée du projet: 31.12.2015 - 31.12.2015

Montant global du projet: 99'000 CHF

Statut: Completed

2023

Can a wine be feminine? :

Scientific paper ArODES

gendered wine descriptors and quality, price, and aging potential

Philippe Masset, Lohyd Terrier, Florine Livat

Journal of Wine Economics, 2023, Vol. 18, No. 4, pp. 273-285

Link to the publication

Summary:

By analyzing more than 1,400 expert tasting notes, we assess the so-called gender profile of Bordeaux wines. We identify 329 gender-related wine descriptors, with a good balance between masculine and feminine descriptors. Some wines and vintages are described as more feminine than others, but no clear trend over time emerges. Our regression analysis further reveals that more feminine wines receive similar ratings and sell at similar prices as their more masculine counterparts, but they are perceived as having a much more limited aging potential.

To share or not to share :

Scientific paper ArODES

an analysis of wine list disclosure by Swiss restaurant owners

Olivier Gergaud, Philippe Masset, Alice Pedrinelli, Jean-Philippe Weisskopf

Journal of Wine Economics, Vol. 19, pp. 4-18

Link to the publication

Summary:

This paper uses data from the 2021 Swiss edition of the Gault&Millau food guide to analyze the probability with which restaurant owners decide to share their wine list with the public. This is an important question relating to the amount of information circulating in markets characterized by information asymmetry in the context of experience and credence goods. We find that restaurant owners are more willing to share wine lists with others if competition is limited or their wine list does not contain idiosyncratic information that competitors may use strategically. Interviews indicate the challenge for restaurants to balance the risk of sharing information with competitors and the opportunity to attract wine lovers by revealing an appealing wine list. We also show that this decision depends on cultural considerations.

In family we trust :

Scientific paper ArODES

in good and bad times

Philippe Masset, Cédric Poretti, Jean-Philippe Weisskopf

International review of finance, 24, 1, pp. 128-138

Link to the publication

Summary:

This short report investigates the stock market behavior of Swiss companies during the COVID-19 pandemic. Results suggest that family firms performed better during the outbreak and post-lockdown periods than widely-held firms. Family firms also displayed a larger abnormal trading volume drop than widely-held companies. In size-sorted subsamples, the volume difference appears more pronounced for smaller firms. We explain these findings by family firms, especially smaller ones, predominantly attracting investors with a long-term horizon. Such investors are less likely to sell during market turmoil, making family firms not only less liquid but also less sensitive to market fluctuations.

The impact of wine tasters’ expectations on wine quality ratings and willingness-to-pay

Scientific paper ArODES

Philippe Masset, Steffen Raub

Journal of Wine Economics, 18, 2, 156-172

Link to the publication

Summary:

Is it possible to exploit cognitive biases so that a non-professional taster prefers one wine to several other absolutely identical wines? To address this question, three complementary experiments were carried out. Each time, five wines were tasted blind in a tasting laboratory by 24 to 34 tasters. Converging evidence from the experiments shows that participants were not capable of identifying that some of the wines they were tasting were absolutely identical. Moreover, the results show that by providing information about the wines’ ratings, prices, or reputation, tasters’ expectations can be modified, and, as a result, their evaluations of the wines can be altered. Specifically, we show that it is possible to modify the ranking between different wines and to get tasters to prefer a wine over other absolutely identical wines. Finally, a surprising finding was that experienced tasters express stronger opinions and adapt their evaluations more strongly after being given manipulative information on the wines they taste.

Comment faire briller un vin ? :

Professional paper ArODES

ajoutez-y une pincée de manipulation !

Philippe Masset

Vignes Vergers, 4, pp. 24-27

Link to the publication

Summary:

La recherche en dégustation, évaluation et expertise du vin s’est développée de manière significative ces vingt dernières années. Cela est dû au fait que le vin offre un laboratoire passionnant pour étudier des questions de recherche qui s’étendent au-delà de cette noble boisson.

Cross-dimensional measures of asset lightness and fee orientation in lodging groups

Scientific paper ArODES

Sonja Lussi, Philippe Masset, Jean-Philippe Weisskopf, Inès Blal

International journal of hospitality management, 2023, vol. 109, article 103391

Link to the publication

Summary:

This study proposes cross-dimensional measures of the degree of implementation of the lodging industry’s asset- light & fee-oriented (ALFO) strategy. We apply a common factor analysis to measure the degree of implemented ALFO strategy on a sample of 14 lodging companies over the period 2001–2021. The analysis confirms that there is no one-size-fits-all approach and that companies position themselves distinctively on the two dimensions. The fee-oriented strategy has strengthened continuously since 2005, while that of the asset-light strategy has increased rapidly between 2001 and 2005, but its evolution has been more erratic since then. Our results shed light on the importance of intangibles in the asset-light strategy and the operationalisation of the construct. This study also contributes to the debate on the financial impact of the ALFO strategy. We show that AL and FO positively affect financial performance and firm value and that by combining them, the effect doubles.

Efficient pricing of Bordeaux en primeur wines

Scientific paper ArODES

Philippe Masset, Jean-Philippe Weisskopf, Jean-Marie Cardebat

Journal of Wine Economics, 18, 1, pp. 39-65

Link to the publication

Summary:

This paper proposes an approach to determine efficient release prices on the Bordeaux en primeur (primary) market. The model exploits information from the secondary market to estimate efficient release prices. We apply the model to a representative sample of wines from the 2021 vintage. The results show that most chateaux released their wines at prices that were too high. The median overpricing is 5.2% but exceeds 30% for some wines. This situation may be partially attributed to excessively uniform pricing caused by the tendency of chateaux with similar status to release their wines at similar price levels.

2022

Fine wine pricing in a small and highly competitive market

Scientific paper ArODES

Philippe Masset, Alexandre Mondoux, Jean-Philippe Weisskopf

International journal of wine business research, 2023, 35, 1, 164-186

Link to the publication

Summary:

Purpose – This study aims to identify the price determinants of fine wines in a small and competitive market. These characteristics are found in many lesser-known wine-producing countries and are often difficult to analyse because of lack of data. Design/methodology/approach – This study hand-collects and transcribes wine-related data for 149 Swiss wineries and 2,454 individual wines over the period 2014–2018 directly from wine lists provided by wineries. This study uses multivariate ordinary least squares regressions to analyse the relation between wine attributes and prices and to assess the effect of a currency shock caused by the sudden appreciation of the Swiss franc in 2015 as well as a reduction in information asymmetries induced by the novel coverage of Swiss wines by TheWine Advocate. Findings – Prices mainly depend on collective reputation, production techniques and product positioning. Surprisingly, following a sharp appreciation of the Swiss franc, producers did not reduce prices. The arrival of a highly influential wine expert on the market also had a positive price effect on rated wines and producers. Both hint at wineries attempting to position themselves relative to competitors. Originality/value – Few studies examine the price drivers in lesser-known wine markets, where competition is fierce. This study’s results show that wine pricing differs from other more famous and larger wine regions. In addition, to the best of the authors’ knowledge, this study is also the first to analyse the impact of a currency shock and a reduction in information asymmetries on wine prices.

2021

Analyzing the risks of an illiquid and global asset :

Scientific paper ArODES

the case of fine wine

Philippe Masset, Jean-Philippe Weisskopf, Jean-Marie Cardeba, Benoît Faye, Eric Le Fur

The quarterly review of economics and finance, 2021, vol. 82, pp. 1-25

Link to the publication

Summary:

We use a unique and very deep database to examine the performance of wine investments over the period 2003–2014. Our results reveal that the returns stemming from those investments are important but can largely be explained by their exposure to common risk factors. It appears essential to properly account for the lack of liquidity on the wine market and its exposure to global currency risk. Controlling for these wine market specificities and contradicting prior evidence, fine wines do not seem to offer abnormal returns.

Did wine consumption change during the COVID-19 lockdown in France, Italy, Spain, and Portugal?

Scientific paper ArODES

Magalie Dubois, Lara Agnoli, Jean-Marie Cardebat, Raúl Compés, Benoit Faye, Bernd Frick, Davide Gaeta, Eric Giraud-Héraud, Eric Le Fur, Florine Livat, Giulio Malorgio, Philippe Masset, Giulia Meloni, Vicente Pinilla, João Rebelo, Luca Rossetto, Günter Schamel, Katrin Simon-Elorz

Journal of wine economics, 2021, vol. 16, no. 2, pp. 131-168

Link to the publication

Summary:

This article documents how the COVID-19 crisis has affected the drinking behavior of Latin European wine consumers. Using a large online survey conducted during the first lockdown in France, Italy, Portugal, and Spain (n = 7,324 individuals), we reconstruct the purchasing and consumption patterns of the respondents. The number of people who maintained their wine consumption frequency is significantly higher than those who increased or decreased their consumption. Wine consumption frequency held up better than other types of alcohol (beer and spirits). We analyze heterogeneities among countries and individuals by employing the Marascuilo procedure and an ordered logit model. The latter identifies the impact of demographic, commercial, and psychosocial factors on wine consumption frequency. The results shed light on changes in wine consumer behavior during the first lockdown and consider possible post-lockdown trends that could be useful to industry players. (JEL Classifications: D5, L66, Q1)

Mitigating downside risk of portfolio diversification :

Scientific paper ArODES

wine versus other tangible assets

Philippe Masset, Frantz Maurer

Economic modelling, 2021, vol. 102, article no 105579, pp. 1-12

Link to the publication

Summary:

Investors increasingly use tangible assets and especially wine to reduce the volatility of their portfolios through improved diversification. However, these assets are long-horizon investments, and therefore, short-term fluctuations (volatility) are of little relevance. Instead, assessing if these assets reduce the risk of facing severe losses (downside risk) appears more appropriate. Unfortunately, the literature offers little guidance on this issue. To address this, we analyze portfolios containing both traditional and tangible assets. Our results demonstrate that wine not only presents a lower downside risk than most other tangible assets but also reduces portfolios’ downside risk. This is due to wine-market specific factors driving wine returns and thus disconnecting them from other asset returns. We also show that gold presents similar advantages as wine and that combining these two assets may further enhance their effect. Overall, allocating around 10% of a portfolio to wine seems sensible from a downside risk management perspective.

New York restaurants :

Scientific paper ArODES

a wine odyssey between 1865 and 1920

Philippe Masset

Cornell hospitality quarterly, 2021, vol. 62, no.3, pp. 297–312

Link to the publication

Summary:

We examine the existence of wine in New York City restaurant menus over the period 1865 to 1920 for a sample of 850,000 restaurant menu items and 51,000 wines. Wine was already commonly present on menus in 1865, and its offering increased up until 1914 before dropping with the outbreak of First World War (WWI). Casual restaurants offered a narrower wine selection. Special menus displayed a significantly higher probability of containing wine but with a more limited choice indicating that wine was especially appreciated on special occasions. French wines, especially from Bordeaux and Champagne, were the most represented on menus followed by wines from Germany. The average selling price of a bottle of wine was around US$40 in 2018 terms. Prices, however, fluctuated widely over time and wine type. Notably, American wines were about 50% less expensive than French or German wines.

At what price should Bordeaux wines be released?

Scientific paper ArODES

Philippe Masset, Jean-Philippe Weisskopf

Economic inquiry, 2022, vol. 60, no. 1, pp. 392-412

Link to the publication

Summary:

This paper models optimal release prices of an experience good recurrently issued on markets. Using a sample of Bordeaux wines, we find that using a minimal number of intrinsic and extrinsic attributes is sufficient to explain a large proportion of release prices. We further observe a significant relationship between primary market prices and secondary market prices and general economic conditions. Release prices can deviate from secondary market prices in the short run but remain aligned over the long run. Finally, an out-of-sample analysis indicates that short-run mispricing directly affects the purchase behavior of customers.

2020

Attributes’ specification of wine indexes :

Scientific paper ArODES

is devil in the details?

Jean-Marie Cardebat, Benoit Faye, Eric Le Fur, Philippe Masset

Bankers, markets investors, 2020, no. 161, pp.

Link to the publication

Last frontier investments :

Scientific paper ArODES

the case of Alpine wines

Philippe Masset, Jean-Philippe Weisskopf, Clémentine Fauchery

Journal of wine economics, 2020, vol. 15, Special Issue 2, pp. 181-206

Link to the publication

Summary:

We identify and examine the performance of frontier investments from 2002 to 2017. Using fine wine as a setting, we find that the trade frequency and value of frontier investments in the form of Alpine wines have increased in recent years, leading to a rise in their prices above inflation rates. We further document that this frontier investment has been favorable in terms of risk-adjusted returns and volatility for investors. We also observe that the inclusion of frontier wines in a financial portfolio is favorable for investors, both in terms of returns and diversification benefits, due to low correlation coefficients. The identification and investment into frontier assets appears beneficial for investors looking for new opportunities. (JEL Classifications: C60, G11, Q11).

2019

Producing and consuming locally :

Book chapter ArODES

Switzerland as a local market

Philippe Masset, Jean-Philippe Weisskopf

Dans Alonso Ugaglia, Adeline, Cardebat, Jean-Marie, Corsi, Alessandro, The Palgrave handbook of wine industry economics (Pp. 507-522). 2019, Cham, Switzerland : Palgrave Macmillan

Link to the publication

2018

When rationality meets passion :

Scientific paper ArODES

on the financial performance of collectibles

Philippe Masset, Jean-Philippe Weisskopf

The Journal of Alternative Investments, 2018, vol. 21, no 2, pp. 66-83

Link to the publication

Summary:

This article examines prior evidence and proposes an empirical study of the performance of passion investments in comparison with financial and real assets over the past 20 years. Over this period, classic cars and fine wines (but not visual art) display better returns than U.S. equity, fixed income, and real estate. Volatilities are, overall, low but increase once returns are adjusted for the inherent illiquidity on collectible markets. In a CAPM framework, only classic cars yield significant risk-adjusted returns with an annualized alpha of 5%. At the same time, correlations and systematic risk are low for all collectibles. This diversification benefit is confirmed by a 7% portfolio risk reduction following the inclusion of collectibles in a traditional financial portfolio. The authors further document that the inherent segmentation of collectible classes extends the benefits of cross-asset to intra-asset class diversification. Finally, they find that collectibles have performed slightly less well since the Global Financial Crisis.

Raise your glass :

Book chapter ArODES

wine investment and the financial crisis

Philippe Masset, Jean-Philippe Weisskopf

Dans Ashenfelter, Orley, Gergaud, Olivier, Storchmann, Karl, Ziemba, William, Handbook of the economics of wine (pp. 271-295). 2018, Singapore : World Scientific

Link to the publication

Unlocking the innovation potential of teams

Book chapter ArODES

Philippe Masset, Caroline Henderson

Dans Ashenfelter, Orley, Gergaud, Olivier, Storchmann, Karl, Ziemba, William, Handbook of the economics of wine (pp. 297-335). 2018, Singapore : World Scientific

Link to the publication

Le vin, hédoniste par excellence

Professional paper ArODES

Philippe Masset

Banque finance, 2018, hors-série, pp. 41-42

Link to the publication

Wine indices in practice :

Scientific paper ArODES

nicely labeled but slightly corked

Philippe Masset, Jean-Philippe Weisskopf

Economic modelling, 2018, vol. 68, pp. 555-569

Link to the publication

Summary:

This paper examines and compares wine price indices available on the wine market with those proposed in academia. We especially analyze the impact illiquidity has on the different indices and validate our findings using a simulation which allows us to define the biases induced by illiquidity on the statistical properties of the indices. We also propose adjustments to help market participants improve the reliability of wine indices and ultimately their decision-making. Our evidence indicates that both the volatility and the beta of fine wine is understated when estimated with existing wine index data. The true volatility and beta of the First Growths from Bordeaux appear to be close to 20%, respectively 0.45–0.60, suggesting that the diversification potential of fine wine is more limited than commonly believed.

2016

A study of the performance of fine wine on the Swiss market

Scientific paper ArODES

Philippe Masset

International journal of entrepreneurship and small business, 2016, vol. 29, no. 4, pp. 566-582

Link to the publication

Summary:

This paper studies the price evolution and the performance of an investment in fine wine on the Swiss market over the period 2002-2012. Using a repeat-sales-regression approach we calculate different wine indices based on auction hammer prices obtained by Steinfels Weinauktionen. Our results show that different fine wines followed a similar evolution across the sample period but that the amplitude of returns strongly depended on wine regions and types. While Bordeaux and Burgundy wines performed well, wines from the Rhône valley and Italy show a poorer performance. Compared to financial assets wine has significantly outperformed stocks, but not bonds. We further find that the Swiss franc appreciation has had a significant impact on wine prices.

Red obsession :

Scientific paper ArODES

the ascent of fine wine in China

Philippe Masset, Jean-Philippe Weisskopf, Benoît Faye, Eric Le Fur

Emerging markets review, December 2016, vol. 29, pp. 200-225

Link to the publication

Summary:

This article uses hammer prices from five global auction houses to analyse the price premium Bordeaux fine wine yields at Hong Kong wine auctions. We find that fine wine is on average sold at a 19% premium in Hong Kong. We further observe that the Hong Kong premium is not uniform and most pronounced for wines with perfect Parker scores and the most powerful brands. The premium has declined throughout the sample period from 60% in 2008 to a level of around 15% since 2012. This can be attributed to the increase in knowledge on fine wine by Chinese customers.

2015

Wine tasters, ratings, and en primeur prices

Scientific paper ArODES

Philippe Masset, Jean-Philippe Weisskopf, Mathieu Cossutta

Journal of wine economics, May 2015, vol. 10, no. 1, pp. 75-107

Link to the publication

Summary:

This paper examines the ratings of 12 influential wine critics on the Bordeaux en primeur market over the vintages 2003 – 2012. We hypothesize that wine experts differ significantly in their rating approach and in fl uence on prices. We fi nd that European critics are less transparent and in general more severe in their scoring than their American counterparts. Experts also appear to reach a relatively strong consensus on overall wine quality but have more diverse opinions on wines that achieve a surprising level of quality given the vintage, the ranking, or the appellation from which they originate. Our evidence also suggests that Robert Parker and Jean-Marc Quarin are the most in fl uential critics, as a 10% surprise in their scores leads to a price increase of around 7%. We further fi nd that their impact is higher for appella- tions and estates that are not covered by the of fi cial 1855 classi fi cation and for the best vintages.

Wine funds :

Scientific paper ArODES

an alternative turning sour?

Philippe Masset, Jean-Philippe Weisskopf

Journal of alternative investments, Spring 2015, vol. 17, no. 4, pp. 6-20

Link to the publication

Summary:

This article examines the performance, selectivity, and market-timing abilities of wine fund managers over the 2000–2013 period. The authors hypothesize that wine fund managers should be able to profit from market inefficiencies on the wine market and generate abnormal returns for investors. Their results show that fund managers’ overall selectivity and market-timing abilities appear to be limited. Only one fund offers positive risk-adjusted returns and two funds show a tendency for market timing. Considering non-quantifiable risks, wine funds thus do not appear to be interesting investments.

Analysis of financial time series using wavelet methods

Book chapter ArODES

Philippe Masset

The handbook of financial econometrics and statistics (35 p.). 2015, New York : Springer-Verlag

Link to the publication

Summary:

This chapter presents a set of tools, which allow gathering information about the frequency components of a time series. In a first step, we discuss spectral analysis and filtering methods. Spectral analysis can be used to identify and to quantify the different frequency components of a data series. Filters permit to capture specific components (e.g., trends, cycles, seasonalities) of the original time series. Both spectral analysis and standard filtering methods have two main drawbacks: (i) they impose strong restrictions regarding the possible processes underlying the dynamics of the series (e.g., stationarity) and (ii) they lead to a pure frequency-domain representation of the data, i.e., all information from the time-domain representation is lost in the operation. In a second step, we introduce wavelets, which are relatively new tools in economics and finance. They take their roots from filtering methods and Fourier analysis, but overcome most of the limitations of these two methods. Their principal advantages derive from (i) combined information from both time domain and frequency domain and (ii) their flexibility as they do not make strong assumptions concerning the data- generating process for the series under investigation.

2023

Wine gender :

Conference ArODES

femininity lies in the eye of the critics … and in the wallets of the customers

Philippe Masset, Lohyd Terrier

Proceedings of the 15th Annual Conference of the American Association of Wine Economists (AAWE)

PEOPLE@HES-SO Directory and Skills inventory

Masset Philippe

Associate Professor

Main skills

Corporate Finance

Empirical Finance

Wine Economics

Portfolio Management

Supervision

Data Analysis

Financial Risk Management

Associate Professor

PEOPLE@HES-SO
Directory and Skills inventory