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Regulation and Contract Choice in the Distribution of Wine

Author

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  • Santiago, Michelle
  • Sykuta, Michael

Abstract

The wine industry in the United States has grown tremendously over the past few decades, from fewer than 1,000 wineries in 1980 to upward of 8,500 today. The growth has occurred over a period that has seen substantial changes in the structure of the wine industry, the modes of distribution available to wineries, and the regulations governing them. Most economic research, however, has focused on supply relations between wineries and wine grape growers rather than between wineries and their downstream markets. In this article, we examine wineries' contracting behavior with downstream distributors and the effects of industry structure, winery organizational structure, and state laws regarding direct shipment and distribution franchise laws. (JEL Classifications: D23, L14, L22, L66)

Suggested Citation

  • Santiago, Michelle & Sykuta, Michael, 2016. "Regulation and Contract Choice in the Distribution of Wine," Journal of Wine Economics, Cambridge University Press, vol. 11(2), pages 216-232, August.
    • Handle: RePEc:cup:jwecon:v:11:y:2016:i:02:p:216-232_00
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    Citations

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    Cited by:

    1. Bachev, Hrabrin, 2024. "Основи На Икономиката На Аграрните Договори [Fundamentals of economics of agrarian contracts]," MPRA Paper 121889, University Library of Munich, Germany.
    2. Liang Xu & Vidya Mani & Hui Zhao, 2023. "“Not a box of nuts and bolts”: Distribution channels for specialty drugs," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2283-2303, July.
    3. Alfredo Coelho, 2024. "The Leading Wine Cooperatives in Argentina and Europe: What Are the Strategic Choices to Penetrate the Distribution Channels in the United States and Canada?," Sustainability, MDPI, vol. 16(15), pages 1-16, July.
    4. Bachev, Hrabrin, 2024. "Economic framework for studying and assessing agrarian contracts," MPRA Paper 121504, University Library of Munich, Germany.
    5. Vergamini, Daniele & Bartolini, Fabio & Brunori, Gianluca & Prosperi, Paolo & Genovesi, Simone, 2017. "A search theory model for the Buy Wine matchmaking algorithm in Tuscany," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258623, Agricultural Economics Society.

    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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