Year: 2020
Type: article
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)
Source: Journal of Wine Economics
DOI: 10.1017/jwe.2020.5
Institutions: Institut National de Recherche pour l'Agriculture, l'Alimentation et l'Environnement, Université Bourgogne Franche-Comté, Centre d'économie et de sociologie appliquées à l'agriculture et aux espaces ruraux, Institut Agro Dijon, AgroParisTech, Université Paris-Saclay, Economie Publique, Université de Bourgogne, Centre des Sciences du Goût et de l'Alimentation
Language: English
Topic: Wine Industry and Tourism
Domain: Social Sciences
Open Access status: green
Funder: Agence Nationale de la Recherche
OpenAlex ID: W3036790486