Recherche

Masset Philippe

Associate Professor

Compétences principales

Associate Professor

Ecole hôtelière de Lausanne
Rte de Cojonnex 18, 1000 Lausanne 25, CH

BSc HES-SO in Hôtellerie et professions de l'accueil - Ecole hôtelière de Lausanne

Corporate Finance
Wine economics
Portfolio Management

Terminés

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

AGP

Rôle: Collaborateur/trice

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.

Equipe de recherche au sein de la 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: Terminé

2022

Fine wine pricing in a small and highly competitive market

Article scientifique ArODES

Philippe Masset, Alexandre Mondoux, Jean-Philippe Weisskopf

International journal of wine business research, To be published

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Résumé:

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 :

Article scientifique 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

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Résumé:

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?

Article scientifique 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

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Résumé:

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 :

Article scientifique ArODES

wine versus other tangible assets

Philippe Masset, Frantz Maurer

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

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Résumé:

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 :

Article scientifique ArODES

a wine odyssey between 1865 and 1920

Philippe Masset

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

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Résumé:

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?

Article scientifique ArODES

Philippe Masset, Jean-Philippe Weisskopf

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

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Résumé:

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 :

Article scientifique ArODES

is devil in the details?

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

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

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Last frontier investments :

Article scientifique 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

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Résumé:

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 :

Chapitre de livre 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

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2018

When rationality meets passion :

Article scientifique 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

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Résumé:

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.

Unlocking the innovation potential of teams

Chapitre de livre 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

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Raise your glass :

Chapitre de livre 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

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Le vin, hédoniste par excellence

Article professionnel ArODES

Philippe Masset

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

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Wine indices in practice :

Article scientifique ArODES

nicely labeled but slightly corked

Philippe Masset, Jean-Philippe Weisskopf

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

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Résumé:

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

Article scientifique ArODES

Philippe Masset

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

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Résumé:

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 :

Article scientifique 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

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Résumé:

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

Article scientifique ArODES

Philippe Masset, Jean-Philippe Weisskopf, Mathieu Cossutta

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

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Résumé:

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 :

Article scientifique ArODES

an alternative turning sour?

Philippe Masset, Jean-Philippe Weisskopf

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

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Résumé:

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

Chapitre de livre ArODES

Philippe Masset

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

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Résumé:

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

Assessing true cost of wine and its impact on customers willingness-to-pay

Conférence

Christinet Bastien, Masset Philippe, Martin Rios Carlos, Mondoux Alexandre, Fenal Roxane, Sandoval Alvarado Martha, Soussan Antonin

2ème conférence de l'association européenne des économistes du vin (EuAWE), 28.05.2023 - 31.05.2023, Chania (Grèce)

Recherche

Masset Philippe

Associate Professor

Compétences principales

Corporate Finance

Empirical Finance

Wine Economics

Portfolio Management

Supervision

Data Analysis

Financial Risk Management

Associate Professor