In Vino Veritas: The Effects of Different Management Configurations in German Viniculture
GEABA Discussion Paper No. 04-06
18 Pages Posted: 12 May 2004
Date Written: May 2004
Different management configurations have distinct performance effects. In particular, this is examined for vine-growing estates in Germany. For several reasons managers will prefer higher quality over quantity, thus producing better wines at higher prices in lower volume than self-managing owners do. Conversely, members of cooperatives have divers incentives to sell more and cheaper bottles of lower quality than independent winegrowers. These hypotheses are theoretically derived and empirically tested as well as confirmed for German viniculture.
Keywords: Cooperative, quality preference, viniculture, vineyard, wine
JEL Classification: Q10, L66, P13, C20, L21, D21, J43, J24, M50
Suggested Citation: Suggested Citation