Burak Kazaz featured in Forbes for work on Wine Futures
IEOR visiting scholar and Syracuse University Professor Burak Kazaz’s research on wine analytics was recently featured in a Forbes. In Kazaz’s paper, Wine Analytics: Fine Wine Pricing and Selection under Weather and Market Uncertainty, he argues that distributors that carefully invest in the wine futures market, “could improve profits as much as 21%.”
Most wine distributors today do not invest in wine futures due to the uncertainty of future prices. Due to weather and market conditions, the future valued price of wine may be very different from the actual valued price of the wine. Trying to predict future prices with so many variables affecting the price, is very difficult and discourages wine distributors from attempting to sell in the futures market.
Professor Burak Kazaz has developed a formula to accommodate the various variables that affect bottle prices. The formula tracks, “the impact of weather and market fluctuations on the evolution of wine futures and bottled wine prices.” By using this formula, wine distributors could predict the future of their profits and make profitable investments in the futures trading market.
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