Love or Money? The Effects of Owner Motivation in the California Wine Industry

26 Pages Posted: 24 Feb 2003

See all articles by Fiona M. Scott Morton

Fiona M. Scott Morton

Yale School of Management; National Bureau of Economic Research (NBER)

Joel M. Podolny

Yale School of Management

Multiple version iconThere are 3 versions of this paper

Abstract

Models that assume only consumer tastes determine the characteristics of supply are restrictive; producers can gain utility from aspects of production and pay for deviating from demand by accepting lower financial returns. We model and measure motivations of California winery owners, and analyze their effects on quality and price. We find utility-maximizers are more likely to produce high quality and set higher quality-adjusted prices. Profit-oriented owners are less likely to produce high quality wines. These results suggest that the presence of hobbyists who enjoy producing high quality may lower financial returns in the segment and discourage profit-maximizers from locating there.

Suggested Citation

Scott Morton, Fiona M. and Podolny, Joel M., Love or Money? The Effects of Owner Motivation in the California Wine Industry. Journal of Industrial Economics, Vol. 50, pp. 431-456, 2002. Available at SSRN: https://ssrn.com/abstract=369726

Fiona M. Scott Morton (Contact Author)

Yale School of Management ( email )

New Haven, CT 06520
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Joel M. Podolny

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
32
Abstract Views
1,228
PlumX Metrics