Wine prices in the Nordic countries: Are they lower than in the region of origin?
AbstractThe aim of this paper is to analyse the retail prices on wine in different countries. In general, country-specific price differences on identical wines are expected to reflect differences in taxes, import prices, transportation and other costs. Also the competitive conditions on the retail markets in the relevant countries are important. Accordingly, lack of competition at the retail level, high import prices and high duties on wine all contribute to increase wine prices. Next, consumer prices on wine are expected to be relatively lowest in the producer country and even lower on the local markets in the producing region. The Nordic countries are located far away from overseas wine producing countries, i.e. Australia and California and they all tax wine higher than in the producing country. Finland, Norway and Sweden have state monopoly in the retail trade of wine and spirits whereas the sales system for wine in Denmark is liberal and in line with the Australian and Californian system. Based on price information at the retail level, the paper analyses the logic of the relative prices on identical Australian and Californian red wines bought in Australia and California compared to Denmark, Finland, Norway and Sweden.
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Bibliographic InfoPaper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2002-23.
Length: 32 pages
Date of creation: Sep 2002
Date of revision:
Wine prices; Californian wines; Australian wines; Wine taxes; The Nordic Market for wine;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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- Bentzen, Jan & Smith, Valdemar, 2002. "What does California have in common with Finland, Norway and Sweden?," Working Papers 02-6, University of Aarhus, Aarhus School of Business, Department of Economics.
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