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Contracts and Quality in the California Winegrape Industry

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Listed:
  • Rachael Goodhue
  • Dale Heien
  • Hyunok Lee
  • Daniel Sumner

Abstract

We analyze the relationship between product quality and contractingchoices using the results of a survey of California winegrape growers.Growers who produce high-quality grapes are more likely to use formalwritten contracts than are growers who produce low-quality grapes.Written contracts for high-quality grapes are more likely to includeprovisions regarding the production process, while written contractsfor low-quality grapes are more likely to include explicit financialincentives for sugar content and other product attributes. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Rachael Goodhue & Dale Heien & Hyunok Lee & Daniel Sumner, 2003. "Contracts and Quality in the California Winegrape Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3), pages 267-282, December.
    • Handle: RePEc:kap:revind:v:23:y:2003:i:3:p:267-282
    DOI: 10.1023/B:REIO.0000031371.03322.9e
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