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Consumer Boycotts: The Impact of the Iraq War on French Wine Sales in the U.S

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Larry Chavis
Phillip Leslie
Abstract

The French Opposition to the war in Iraq in early 2003, prompted calls for a boycott of French wine in the US. We measure the magnitude of consumers%u2019 participation in the boycott, and look at basic evidence of who participates. Conservative estimates indicate that the boycott resulted in 26% lower weekly sales at its peak, and 13% lower sales over the six month period that we estimate the boycott lasted for. These findings suggest that business should be concerned that their actions may provoke a boycott which hurts their profits. We also find that neither political preferences or media attention are important determinants of boycott participation.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11981.

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Date of creation: Jan 2006
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Handle: RePEc:nbr:nberwo:11981

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L0 - Industrial Organization - - General

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  1. Teoh, Siew Hong & Welch, Ivo & Wazzan, C Paul, 1999. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," Journal of Business, University of Chicago Press, vol. 72(1), pages 35-89, January. [Downloadable!] (restricted)
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  2. Koku, Paul Sergius & Akhigbe, Aigbe & Springer, Thomas M., 1997. "The Financial Impact of Boycotts and Threats of Boycott," Journal of Business Research, Elsevier, vol. 40(1), pages 15-20, September. [Downloadable!] (restricted)
  3. David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 12(1), pages 31-66, 03. [Downloadable!] (restricted)
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  1. Guy Michaels & Xiaojia Zhi, 2007. "Freedom Fries," CEP Discussion Papers dp0815, Centre for Economic Performance, LSE. [Downloadable!]
  2. Michaels, Guy & Zhi, Xiaojia, 2007. "Freedom Fries," CEPR Discussion Papers 6380, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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