Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-18T21:56:08.686Z Has data issue: false hasContentIssue false
  • English
  • Français

Willingness-to-Pay for Reshuffling Geographical Indications

Published online by Cambridge University Press:  16 June 2020

Monia Saïdi ,
Jean-Sauveur Ay Open the ORCID record for Jean-Sauveur Ay [Opens in a new window] ,
Stéphan Marette  and
Christophe Martin
Monia Saïdi
Affiliation:
CESAER, AgroSup Dijon, INRAE, Université Bourgogne Franche-Comté, 26 boulevard Docteur Petitjean, 21000Dijon, France; e-mail: [email protected].
Jean-Sauveur Ay*
Affiliation:
CESAER, AgroSup Dijon, INRAE, Université Bourgogne Franche-Comté, 26 boulevard Docteur Petitjean, 21000Dijon, France.
Stéphan Marette
Affiliation:
Université Paris-Saclay, INRAE, AgroParisTech, UMR Economie Publique, Avenue Lucien Brétignière, 78850, Thiverval Grignon, France; e-mail: [email protected].
Christophe Martin
Affiliation:
INRAE, UMR Centre des Sciences du Goût et de l'Alimentation, 17 rue Sully, 21000Dijon, France; e-mail: [email protected].
*
e-mail: [email protected] (corresponding author)
Get access Rights & Permissions [Opens in a new window]

Abstract

This article presents a new experimental protocol for estimating consumers’ willingness-to-pay (WTP) for products involved in a reshuffle of geographical indications (GIs), e.g., a change of hierarchical levels within a restricted area. Although the collective reputation of a given GI depends on its temporal stability, reshuffling a GI area could make it better aligned with product quality or consumers’ perception. We first provide a simple theoretical model in which consumers put a negative value on within-GI quality variance, thereby showing that reshuffling the GI designation scheme may increase WTP without any change in product quality. Using the experimental protocol, we evaluate consumer perceptions of different reshuffling scenarios for the vineyards of Marsannay, Burgundy, France. The results reveal a significant increase in WTP for the current distribution of products’ quality. Elicited WTP values are then used to simulate the optimal GI reshuffle. (JEL Classifications: L66, Q18, Q28)

Keywords

experimental economicspublic policyquality signalwine appellation
Type
Articles
Information
Journal of Wine Economics , Volume 15 , Issue 1 , February 2020 , pp. 95 - 111
Copyright
Copyright © American Association of Wine Economists, 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We thank an anonymous referee and the editor for their useful comments that greatly improved the quality of this article. Experimental protocol, data, and replication material are available on the remote repository https://github.com/jsay/reshufGI. This work was supported by the project DIETPLUS ANR-17-CE21-0003.

References

Ashenfelter, O., and Storchmann, K. (2010). Using hedonic models of solar radiation and weather to assess the economic effect of climate change : The case of Mosel Valley vine- yards. Review of Economics and Statistics, 92(2), 333–349.CrossRefGoogle Scholar
Ay, J.-S. (2020). The informational content of geographical indications. American Journal of Agricultural Economics, forthcoming. https://doi.org/10.1111/ajae.12100.CrossRefGoogle Scholar
Becker, G. M., DeGroot, M. H., and Marschak, J. (1964). Measuring utility by a single-response sequential method. Behavioural Science 9(3), 226–232.CrossRefGoogle Scholar
Bonroy, O., and Constantatos, C. (2015). On the economics of labels: How their introduction affects the functioning of markets and the welfare of all participants. American Journal of Agricultural Economics, 97(1), 239–259.CrossRefGoogle Scholar
Combris, P., Lecocq, S., and Visser, M. (2000). Estimation of a hedonic price equation for Burgundy wine. Applied Economics, 32(8), 961–967.CrossRefGoogle Scholar
Costanigro, M., Scozzafava, G., and Casini, L. (2019). Vertical differentiation via multi-tier geographical indications and the consumer perception of quality: The case of Chianti wines. Food Policy, 83, 246–259.CrossRefGoogle Scholar
Cross, R., Plantinga, A. J., and Stavins, R. N. (2017). Terroir in the new world: Hedonic estimation of vineyard sale prices in California. Journal of Wine Economics, 12(3), 282–301.10.1017/jwe.2017.27CrossRefGoogle Scholar
Deconinck, K., and Swinnen, J. (2014). The political economy of geographical indications. American Association of Wine Economists, Working Paper No. 174, December. Available from https://www.wine-economics.org/dt_catalog/aawe-working-paper-no-174-economics/.Google Scholar
Fourcade, M. (2012). The vile and the noble: On the relationship between natural and social classifications in the French wine world. Sociological Quarterly, 53(4), 524–545.CrossRefGoogle Scholar
Gergaud, O., and Ginsburgh, V. (2010). Natural endowments, production technologies and the quality of wines in Bordeaux. Does terroir matter? Economic Journal, 118 (June), F142–F157.CrossRefGoogle Scholar
Gokcekus, O., and Finnegan, C. M. (2017). Price effects of establishing a new sub-AVA within Oregon's Willamette Valley AVA. Journal of Wine Economics, 12(4), 345–353.CrossRefGoogle Scholar
Hakenes, H., and Peitz, M. (2009). Umbrella branding and external certification. European Economic Review, 53(2), 186–196.CrossRefGoogle Scholar
Lavalle, J. (1855). Histoire et statistique de la vigne et des grands vins de la Côte d'Or. Daumier, Dijon.Google Scholar
Lusk, J. L., and Shogren, J. F. (2007). Experimental Auctions. Methods and Applications in Economic and Marketing Research. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Meloni, G., and Swinnen, J. (2018). Trade and terroir: The political economy of the world's first geographical indications. Food Policy, 81, 1–20.CrossRefGoogle Scholar
Menapace, L., and Moschini, G. (2012). Quality certification by geographical indications, trademarks and firm reputation. European Review of Agricultural Economics, 39(4), 539–566.10.1093/erae/jbr053CrossRefGoogle Scholar
Mussa, M., and Rosen, S. (1978). Monopoly and product quality. Journal of Economic Theory, 18(2), 301–317.CrossRefGoogle Scholar
Schnabel, H., and Storchmann, K. (2010). Prices as quality signals: Evidence from the wine market. Journal of Agricultural & Food Industrial Organization, 8(1), Article 2. Available at https://karlstorchmann.com/karlstorchmann/wp-content/uploads/2017/01/Schnabel-Storchmanny-Prices-as-Quality-Signals-Evidence-from-the-Wine-Market-2010.pdf.Google Scholar
Tirole, J. (1996). A theory of collective reputations (with applications to the persistence of corruption and to firm quality). Review of Economic Studies, 63(1), 1–22.CrossRefGoogle Scholar
Yu, J., Bouamra-Mechemache, Z., and Zago, A. (2017). What is in a name? Information, heterogeneity, and quality in a theory of nested names. American Journal of Agricultural Economics, 100(1), 286–310.10.1093/ajae/aax067CrossRefGoogle Scholar
Supplementary material: File

Saïdi et al. Supplementary Materials

Saïdi et al. Supplementary Materials

Download Saïdi et al. Supplementary Materials(File)
File 1.8 MB