Do denominations of origin provide useful quality signals? The case of Bordeaux wines

Livat, Florine; Alston, Julian M.; Cardebat, Jean Marie

doi:10.1016/j.econmod.2018.06.003

Cited by 20 publications

(14 citation statements)

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“…The increasing integration of international trade has been extensively studied in the economic literature and is a continuing source of debate, with some studies assuming perfect competition. However, under certain circumstances, monopolistic competition seems more appropriate and representative of a high level of product differentiation (Livat, Alston, and Cardebat, 2019). This is the case with wine, which is a highly differentiated experience good for which consumers consider several attributes in the selection process (e.g., price, taste, color, and brand).…”

Section: Introductionmentioning

confidence: 99%

“…By studying wine experts’ opinions, Cardebat and Livat (2016) argue that a wine (even one with no evident defects) can be pleasant for one consumer and unpleasant for another, depending on subjective quality appreciation. Additionally, some authors (e.g., Gergaud and Ginsburgh, 2010; Cardebat and Livat, 2016; Livat, Alston, and Cardebat, 2019) suggest that horizontal differentiation can be measured by reference to designations of origin. In summary, given the product differentiation observed in the wine industry, the analysis of this industry calls for the use of models that fit monopolistic competition well; this is the case for the gravity model for international trade.…”

Section: Introductionmentioning

confidence: 99%

“…c Centre for Transdisciplinary Development Studies (CETRAD), University of Trás-os-Montes and Alto Douro (UTAD), Vila Real, Portugal; e-mail: jrebelo@utad.pt. competition seems more appropriate and representative of a high level of product differentiation (Livat, Alston, and Cardebat, 2019). This is the case with wine, which is a highly differentiated experience good for which consumers consider several attributes in the selection process (e.g., price, taste, color, and brand).…”

Section: Introductionmentioning

confidence: 99%

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Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal

2019

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Assuming horizontal differentiation and using an expanded gravity model, the main objective of this article is to assess the determinants of Portuguese wine exports. Horizontal differentiation is considered, with still and fortified wines being distinguished, as well as three distinct designations of origin: Vinho Verde, Douro, and Port wines. The results from the period between 2006 and 2016 suggest that wineries and private and public agencies should focus their commercial and policy efforts on countries with high purchasing power and/or with great potential for growth, regardless of whether the customs costs are higher. Moreover, it is concluded that horizontal differentiation influences the export determinants, suggesting there should exist different internationalization strategies for distinct types of wine. (JEL Classifications: F10, F14, L66)

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal

2019

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“…The idea spread. In today’s global wine market as many as 1239 different wine appellations exist; 57 in Bordeaux alone (Livat et al 2018 ; IOV 2019 ). Similar policies were introduced by other European wine-producing countries as they joined the European Community (EC), and the appellation rules were harmonized under the aegis of an expanding European Union (EU) throughout various reforms of the Common Agricultural Policy (CAP), most recently in 2013.…”

Section: Introductionmentioning

confidence: 99%

Reflections on the Political Economy of European Wine Appellations

Alston

Gaeta

2021

Ital Econ J

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Today’s European wine policy is centered on a system of appellations, implemented as geographical indications (GIs), that entail significant technological regulations—restricting the varieties that may be grown, while imposing maximum yields per hectare and other rules regarding grape production and winemaking practice. This paper outlines the historical development of European wine policy under the CAP, and presents a more detailed analysis of the economic consequences of the rules and regulations under the appellation system. The introduction of these rules and regulations was probably beneficial initially, both for their didactive effect on wine producers and consumers and as a way of overcoming a significant “lemons” problem in the market. However, those same rules and regulations are much less valuable today, given (1) the potential for alternative sources of information to solve the lemons problem, and (2) evidence that the appellation system per se might not be effectively serving that purpose as well as it once did, while some of the regulations impose significant social costs. Yield restrictions, in particular, are economically inefficient as a way of enhancing and signaling quality (their ostensible purpose) and as a way of restricting total supply to support market prices and thus producer incomes (a significant motivation). The inherent weaknesses of the policy design are compounded by failures of governance. A less heavy-handed approach to policy would allow more scope for the market mechanism to match supply and demand for this signature product from European agriculture.

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“…A prática de usar a Indicação Geográfica Protegida (IGP) e a Denominação de Origem Protegida (DOP) tem se disseminado cada vez mais na Europa. A França foi o primeiro país a criar um sistema de rotulação com DOP, sendo que os produtos são controlados pelo estado para garantir sua origem territorial e sua conformidade com regras precisas de produção e processamento, de forma a garantir sua tipicidade ou distinção de características (Livat, Alston, & Cardebat, 2019). No Brasil, a regulamentação e, consequentemente, o uso de indicações geográficas (indicação de procedência e denominação de origem) são recentes, mas vem crescendo nos últimos anos.…”

Section: Introductionunclassified

Indicação geográfica e qualidade de cachaças segundo a percepção de apreciadores da bebida

Valente

Neves

Pérez

et al. 2020

RSD

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O conceito de qualidade de um produto, sob o ponto de vista do consumidor, é baseado nas suas percepções subjetivas. No entanto, no processo de aquisição de um produto, atributos de qualidade podem ser observados, auxiliando o consumidor na sua tomada de decisão. Dentre estes atributos, selos de indicação geográfica têm sido apontados como indicadores de qualidade de produtos alimentícios podendo ser considerados pelos consumidores ao realizar a sua compra. Objetivando avaliar a relevância de sinais e atributos de qualidade na escolha da Cachaça, por apreciadores com alto nível de conhecimento e elevado grau de envolvimento com a bebida, foram aplicados questionários a esse público. Os resultados mostraram que os atributos sensoriais são os parâmetros mais importantes para os apreciadores de cachaça. No entanto, antes da degustação do produto, fatores como marca, preço e marketing têm maior relevância no momento da compra. Os resultados apontaram que a origem geográfica ainda não é um conceito relevante aos consumidores desse nicho de mercado.

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Do denominations of origin provide useful quality signals? The case of Bordeaux wines

Cited by 20 publications

References 56 publications

Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal

Horizontal Differentiation and Determinants of Wine Exports: Evidence from Portugal

Reflections on the Political Economy of European Wine Appellations

Indicação geográfica e qualidade de cachaças segundo a percepção de apreciadores da bebida

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