Regulation and Contract Choice in the Distribution of Wine

Journal of Wine Economics, 11(2), November 2016

36 Pages Posted: 14 Nov 2014 Last revised: 23 Jan 2018

Michelle Santiago

Murray State University

Michael E. Sykuta

University of Missouri at Columbia - Division of Applied Social Sciences

Date Written: December 5, 2015

Abstract

The wine industry in the United States has grown tremendously over the past few decades, from fewer than 1,000 wineries in 1980 to upward of 8,500 today. The growth has occurred over a period that has seen substantial changes in the structure of the wine industry, the modes of distribution available to wineries, and the regulations governing them. Most economic research, however, has focused on supply relations between wineries and wine grape growers rather than between wineries and their downstream markets. In this article, we examine wineries’ contracting behavior with downstream distributors and the effects of industry structure, winery organizational structure, and state laws regarding direct shipment and distribution franchise laws.

Keywords: wine distribution, regulation, direct shipment, franchise laws

JEL Classification: D23, L14, L22, L66

Suggested Citation

Santiago, Michelle and Sykuta, Michael E., Regulation and Contract Choice in the Distribution of Wine (December 5, 2015). Journal of Wine Economics, 11(2), November 2016. Available at SSRN: https://ssrn.com/abstract=2523614 or http://dx.doi.org/10.2139/ssrn.2523614

Michelle Santiago

Murray State University ( email )

Murray, KY 42071-0009
United States

Michael E. Sykuta (Contact Author)

University of Missouri at Columbia - Division of Applied Social Sciences ( email )

143 Mumford Hall
Columbia, MO 65211
United States
573-882-1738 (Phone)
573-884-3958 (Fax)

HOME PAGE: http://michaelsykuta.com

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