Quality Classifications in Competition: Price Formation in the German Wine Market
Year: 2013
Type: book-chapter
Abstract: How do judgment devices influence price formation? We investigate this question through a study of the German wine market. The German wine market is characterized by the simultaneous existence of two classification systems: the official classification system referring to the “quality in the glass,” and the concept of “terroir,” introduced by a private association of quality winemakers, the Verband deutscher Prädikatsweingüter. We used a data set comprising 1,890 wines from 248 different wineries in the German wine-growing regions of Rheingau and Rheinhessen. Our results show that the two classification systems function as mutually exclusive strategic options for winemakers. We also show that the non-official classification of terroir is much more powerful in explaining price formation within the market.
Source: Oxford University Press eBooks
Authors: Jörg Rössel, Jens Beckert
Language: English
Topic: Wine Industry and Tourism
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1834767480