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Domaine Pas de Choix: government intervention in the Champagne market

Author

Listed:
  • Colleen E. Haight
  • Nikolai G. Wenzel

Abstract

Purpose - Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the newAppellation d’Origine Contrôléesystem, forever altering the incentives and output of wine producers. The paper aims to discuss these issues. Design/methodology/approach - As a result, some indigenous varietals have disappeared entirely from the region – and a handful remain only in the vineyards and bottles of a few bold entrepreneurs, constituting less than 1 percent of Champagne production. Findings - The authors assess several traditional explanations (from taste and preferences to agricultural resilience)-and dismiss them as unconvincing. Instead, the authors adopt a public choice framework of regulatory capture to explain the puzzle of thwarted entrepreneurship and consumer choice. Originality/value - This paper is original.

Suggested Citation

  • Colleen E. Haight & Nikolai G. Wenzel, 2018. "Domaine Pas de Choix: government intervention in the Champagne market," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 7(1), pages 51-61, March.
    • Handle: RePEc:eme:jepppp:jepp-d-17-00019
    DOI: 10.1108/JEPP-D-17-00019
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    More about this item

    Keywords

    Champagne; Quality; Regulation; Consumer choice; Wine appellations; B52; L51; N53; N54;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • 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-

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