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Why cooperative wineries produced poor quality wine and why they were set up: Evidence from Spain (1895-1935)

Author

Listed:
  • Samuel Garrido

    (Economics Department, Universitat Jaume I, Castellón-Spain)

Abstract

Since the 1950s a substantial part of all European wine has come from cooperative wineries, which since their appearance around the year 1900 have mostly produced cheap, poor quality wine. This paper discusses whether this has been a consequence of their inability to solve a collective action problem. After showing that this is not so, it examines why cooperatives concentrated on the production of bad wine and studies why their market share was small before the 1950s. Lastly, it uses data from Spain to analyse the factors determining the creation of cooperative wineries in the early twentieth century.

Suggested Citation

  • Samuel Garrido, 2018. "Why cooperative wineries produced poor quality wine and why they were set up: Evidence from Spain (1895-1935)," Working Papers 2018/10, Economics Department, Universitat Jaume I, Castellón (Spain).
  • Handle: RePEc:jau:wpaper:2018/10
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    More about this item

    Keywords

    wine; winemaking cooperatives; cooperative wineries; collective action;
    All these keywords.

    JEL classification:

    • N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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