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The Economics of Nested Names: Name Specificity, Reputations, and Price Premia


  • Marco Costanigro
  • Jill J. McCluskey
  • Christopher Goemans


A good can be identified by its region or country of origin, the firm that produces it, and its product name. In other words, names can nest within each other to categorize goods with increasing specificity. This article develops a conceptual framework for jointly analyzing the effect of product, firm, and collective reputations on market price. The model is estimated via quantile regression with California wine market data. The results portray how the structure and relative importance of reputations change as product prices vary. Specifically, reputation premia migrate from collective to specific names as prices increase. Copyright 2010, Oxford University Press.

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  • Marco Costanigro & Jill J. McCluskey & Christopher Goemans, 2010. "The Economics of Nested Names: Name Specificity, Reputations, and Price Premia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1339-1350.
  • Handle: RePEc:oup:ajagec:v:92:y:2010:i:5:p:1339-1350

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    References listed on IDEAS

    1. Stéphan Marette & John Crespi, 2003. "Can Quality Certification Lead to Stable Cartels?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 43-64, August.
    2. Dermot J. Hayes & Sergio H. Lence & Andrea Stoppa, 2004. "Farmer-owned brands?," Agribusiness, John Wiley & Sons, Ltd., vol. 20(3), pages 269-285.
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    Cited by:

    1. Saens, Rodrigo & Berríos, Rodrigo, 2012. "The country brand trap," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. repec:eee:jfpoli:v:71:y:2017:i:c:p:8-16 is not listed on IDEAS
    3. Teuber, Ramona & Herrmann, Roland, 2012. "Towards a differentiated modeling of origin effects in hedonic analysis: An application to auction prices of specialty coffee," Food Policy, Elsevier, vol. 37(6), pages 732-740.
    4. Yu, Jianyu & Bouamra-Mechemache, Zohra & Zago, Angelo, 2016. "What’s in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names," 149th Seminar, October 27-28, 2016, Rennes, France 244897, European Association of Agricultural Economists.
    5. Christopher R. Gustafson & Travis J. Lybbert & Daniel A. Sumner, 2016. "Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 91-103, January.
    6. Leufkens, Daniel, 2014. "Der Wert Geschützter Herkunftsangaben In Einer Industrieökonomischen Und Hedonischen Preisanalyse," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187429, German Association of Agricultural Economists (GEWISOLA).
    7. Edward Oczkowski, 2016. "Analysing Firm-level Price Effects for Differentiated Products: The Case of Australian Wine Producers," Australian Economic Papers, Wiley Blackwell, vol. 55(1), pages 43-62, March.
    8. Schnabel Hubert & Storchmann Karl, 2010. "Prices as Quality Signals: Evidence from the Wine Market," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-23, February.
    9. Leufkens, Daniel & Schröck, Rebecca, 2013. "Regulierungspolitische Effekte geschützter geografischer Herkunftsangaben der EU in einer dynamischen und qualitätspolitischen Perspektive," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156119, German Association of Agricultural Economists (GEWISOLA).
    10. Gustafson, Christopher R. & Lybbert, Travis J. & Sumner, Daniel A., 2016. "Consumer knowledge affects valuation of product attributes: Experimental results for wine," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 85-94.
    11. Deselnicu, Oana C. & Costanigro, Marco & Souza-Monteiro, Diogo M. & McFadden, Dawn Thilmany, 2013. "A Meta-Analysis of Geographical Indication Food Valuation Studies: What Drives the Premium for Origin-Based Labels?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), August.
    12. Gergaud, Olivier & Livat, Florine & Rickard, Bradley & Warzynski, Frederic, 2016. "The Costs and Benefits of Collective Reputation: Who gains and who loses from generic promotion programs?," Working Papers 231135, American Association of Wine Economists.
    13. Bailet, Isabelle & Diotallevi, Francesco & Marchini, Andrea, 2010. "Determinant factors in reputation of wines:analysis of wine production in Central Italy," MPRA Paper 40635, University Library of Munich, Germany.

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