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Does Product Diversity Signal Bargains in Australian Wine?

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Author Info
Horowitz, Ira
Lockshin, Larry
Abstract

The residuals from a set of linear regression equations built to explain the quality of a bottle of Australian wine via eight quality signals are examined to determine whether there is any relationship between their signs for individual producers and the diversity of their offerings. Product diversity is found to be a fault-ridden signal of a quality-bargain, which we define as a bottle of wine whose quality rating exceeds its regression-based expectation. Indeed, to the extent that the signal does impart useful information, the message would be that consumers are less likely to get their money's worth the greater is the diversity of the producer's offerings.

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File URL: http://purl.umn.edu/8204
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Publisher Info
Article provided by International Food and Agribusiness Management Association (IAMA) in its journal International Food and Agribusiness Management Review.

Volume (Year): 09 (2006)
Issue (Month): 01 ()
Pages:
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Handle: RePEc:ags:ifaamr:8204

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Related research
Keywords: wine marketing; product diversity; wine quality; predicted quality; quality-bargain; Agribusiness; Marketing;

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  1. Victor Ginsburgh, 2003. "Awards, Success and Aesthetic Quality in the Arts," Journal of Economic Perspectives, American Economic Association, vol. 17(2), pages 99-111, Spring. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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