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Matchmakers in wine marketing channels: The case of French wine brokers

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  • Virginie Baritaux

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Magali Aubert

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Etienne Montaigne

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Hervé Remaud

    (School of Marketing, University of South Australia, Wine Marketing Group, Erhenberg-Bass Institute for Marketing Science, GPO Box 2471 - Adelaide SA 5001, Australia)

Abstract

French wine brokers are independent matchmaker intermediaries. They help buyers and sellers of bulk wine to meet and transact. This paper aims to identify the determinants of the wine brokers' use. We use a transaction cost approach and we hypothesize that buyers and sellers use brokers because they may reduce costs associated with transactions on bulk wine. A database of contracts on bulk vins de table and vins de pays is used to estimate a logistic regression of the probability of “broker intervention.” We show that if the sellers do not belong to a cooperative production structure and if the buyers do not belong to the productive sphere it increases the recourse to brokers. Also, the extent of the production area and the potential quality variance among wine growers and the size of the contract positively influence the use of brokers. [EconLit citations: L140, L220]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 375-390, 2006.

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File URL: http://hdl.handle.net/10.1002/agr.20092
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 22 (2006)
Issue (Month): 3 ()
Pages: 375-390

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Handle: RePEc:wly:agribz:v:22:y:2006:i:3:p:375-390

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 1-26, September.
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  7. Alessandro Lizzeri, 1999. "Information Revelation and Certification Intermediaries," RAND Journal of Economics, The RAND Corporation, vol. 30(2), pages 214-231, Summer.
  8. Harald Trabold, 2002. "Export Intermediation: An Empirical Test of Peng and Ilinitch," Journal of International Business Studies, Palgrave Macmillan, vol. 33(2), pages 327-344, June.
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  17. Abdullah Yavas & Thomas J. Miceli & C.F. Sirmans, 2001. "An Experimental Analysis of the Impact of Intermediaries on the Outcome of Bargaining Games," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 29(2), pages 251-276.
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Cited by:
  1. Alboiu, Cornelia, 2012. "Governance and Contractual Structure in the Vegetable Supply Chain in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 68-82, December.
  2. Marta Fernández-Olmos & Jorge Rosell-Mart�nez & Manuel A. Espitia-Escuer, 2009. "Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 231-250.

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