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Matchmakers in wine marketing channels: The case of French wine brokers

Author

Listed:
  • Virginie Baritaux

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Magali Aubert

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Etienne Montaigne

    (UMR MOISA (Montpellier, France), 2 place Pierre Viala - 34060 Montpellier Cedex 1, France)

  • Hervé Remaud

    (School of Marketing, University of South Australia, Wine Marketing Group, Erhenberg-Bass Institute for Marketing Science, GPO Box 2471 - Adelaide SA 5001, Australia)

Abstract

French wine brokers are independent matchmaker intermediaries. They help buyers and sellers of bulk wine to meet and transact. This paper aims to identify the determinants of the wine brokers' use. We use a transaction cost approach and we hypothesize that buyers and sellers use brokers because they may reduce costs associated with transactions on bulk wine. A database of contracts on bulk vins de table and vins de pays is used to estimate a logistic regression of the probability of “broker intervention.” We show that if the sellers do not belong to a cooperative production structure and if the buyers do not belong to the productive sphere it increases the recourse to brokers. Also, the extent of the production area and the potential quality variance among wine growers and the size of the contract positively influence the use of brokers. [EconLit citations: L140, L220]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 375-390, 2006.

Suggested Citation

  • Virginie Baritaux & Magali Aubert & Etienne Montaigne & Hervé Remaud, 2006. "Matchmakers in wine marketing channels: The case of French wine brokers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 375-390.
  • Handle: RePEc:wly:agribz:v:22:y:2006:i:3:p:375-390
    DOI: 10.1002/agr.20092
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    References listed on IDEAS

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    Cited by:

    1. Alboiu, Cornelia, 2012. "Governance and Contractual Structure in the Vegetable Supply Chain in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 68-82, December.
    2. Marta Fernández-Olmos & Jorge Rosell-Martínez & Manuel A. Espitia-Escuer, 2009. "Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 231-250.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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