The concepts of the theory of endogenous coalition formation have not been utilized much to analyze issues in the field of applied economics. In this paper, we show how these concepts make a relevant and innovative contribution to these issues. We first illustrate the fundamentals of this theory and we present the concept of internal and external cartel stability. We provide an illustration of this concept through a basic example of an oligopoly in a cartelization situation. Then, we show the relevance of these concepts by analyzing the battle between the high-definition DVD-player standards: Sony's Blu-Ray and NEC/Toshiba's HD-DVD.
Purpose -This paper aims to illustrate the mechanisms for the economic regulation of quantity and quality in the Chianti Classico appellation of origin, focusing on the role of the sectorial organization in regulating the intermediary market, reinforcing the product's identity and the reliability of the quality signal. Design/methodology/approach -Starting from some background elements (literature review and legislation framework) and given the supply chain organization and the main market mechanisms, the quantity and quality regulatory tools are illustrated and it is suggested how to improve the role of the sectorial organization in achieving the effectiveness of the system. Findings -Reinforcing the quantity constraint established by the production code, controlling and certifying the compliance process to the minimum quality standard from upstream grape production to downstream commercialization, reinforcing the link with the terroir and improving the promotional activity are some of the main strategies identified to improve the effectiveness of the system. In addition, a more operational role should be recognized to the sectorial organization, in order to stabilize and regulate the transactions on the intermediary market and attract a more market-oriented approach.Research limitations/implications -Using a case study and not a quantitative approach represents the limit of this paper. Originality/value -The paper provides an original contribution in the sense that some empirical evidences are highlighted, which both support the theoretical arguments for an economic regulation of supply by the sectorial organizations and provide some suggestions, which might be useful outside the Chianti Classico to improve the effectiveness and reliability of the appellation of origin.
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