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Products and Prejudice: Measuring Country-of-Origin Bias in U.S. Wine Imports

UC Santa Cruz Center for International Economics Working Paper No. 03-10

22 Pages Posted: 30 Jul 2003  

Eileen L. Brooks

University of California, Santa Cruz - Department of Economics

Date Written: June 2003

Abstract

Should exporters worry about country-of-origin bias? Although the pervasiveness of country-level product advertising suggests that they do, lack of data has limited the empirical study of subjective bias toward products from a specific country. Using data from the U.S. wine industry, including numerical blind tasting evaluations, this paper directly computes the impact of country-of-origin bias upon wine import prices. A hedonic pricing framework is used to control for vintage, blind-tasted quality, varietals, production costs and quantities. Cross-country comparisons of price residuals suggest that "Product of Italy" on the label can raise the price of a bottle by more than fifty percent.

Keywords: International trade, hedonic pricing, wine

JEL Classification: F13, L11, L15, Q11, Q17

Suggested Citation

Brooks, Eileen L., Products and Prejudice: Measuring Country-of-Origin Bias in U.S. Wine Imports (June 2003). UC Santa Cruz Center for International Economics Working Paper No. 03-10. Available at SSRN: https://ssrn.com/abstract=421800 or http://dx.doi.org/10.2139/ssrn.421800

Eileen L. Brooks (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Social Sciences 1
Rm 317
Santa Cruz, CA 95064
United States
831-459-5077 (Fax)

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