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Discrete/Continuous Consumer Demand Choices: An Application to the U.S. Domestic and Imported White Wine Markets

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  • Pompelli, Gregory K
  • Heien, Dale

Abstract

This study develops a model of domestic and imported white wine demand in the United States that incorporates demographic characteristics, usage rates, income, and price information. James J. Heckman's two-step method is used to model the discrete/continuous nature of consumer demand for white wine in the U.S. market. The own- and cross-price elasticities developed in this study are, with one exception, inelastic and generally agree with estimates derived by other authors. Income elasticities are also found to be inelastic and correspond to the results of most previous studies. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Pompelli, Gregory K & Heien, Dale, 1991. "Discrete/Continuous Consumer Demand Choices: An Application to the U.S. Domestic and Imported White Wine Markets," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 18(1), pages 117-130.
    • Handle: RePEc:oup:erevae:v:18:y:1991:i:1:p:117-30
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    Cited by:

    1. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(04), pages 1-17, November.
    2. Seccia, Antonio & Nardone, Gianluca & Stasi, Antonio, 2008. "Analisi del mercato Italiano del vino Syrah [Analysis of Italian Market of Syrah Wine]," MPRA Paper 14665, University Library of Munich, Germany, revised 15 Mar 2009.
    3. Breustedt, Gunnar & Schulz, Norbert & Latacz-Lohmann, Uwe, 2013. "Kalibrierung von Vertragsnaturschutzprogrammen mittels eines zweistufigen Discrete-Choice-Experimentes," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(4).
    4. Thompson, Stanley R. & Sam, Abdoul G., 2008. "Country of Origin Advertising and U.S. Wine Imports," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6553, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Butter, F. A. G. den & Delifotis, A. & Koning, R. H., 1997. "Preference shifts in consumer demand for beer and wine," Serie Research Memoranda 0052, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. Buccola, Steven T. & Zanden, Loren Vander, 1997. "The Demand for Wines: Variety and Region Effects," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35765, Western Agricultural Economics Association.

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