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Disequilibrium in the Australian wine industry: A product diversity approach

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  • Davis, Tim
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

Stocks of Australian wine, at an industry level, have considerably exceeded sales for many years. However, all varieties and regions are not the culprits of this 'oversupply'. The mismatching of supply and demand can be attributed to a lack of adequate market information, particularly at the export level. Sub-optimal levels of product diversity in international markets can act as a barrier to entry for new wine exporters, despite that market remaining a promising prospect from a purely volume perspective. This paper focuses on product diversity. An empirical model for studying the US wine market is proposed and the implications of the analysis are explored.

Suggested Citation

  • Davis, Tim & Ahmadi-Esfahani, Fredoun Z., 2006. "Disequilibrium in the Australian wine industry: A product diversity approach," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174094, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare06:174094
    DOI: 10.22004/ag.econ.174094
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    References listed on IDEAS

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    1. Kelvin Lancaster, 1990. "The Economics of Product Variety: A Survey," Marketing Science, INFORMS, vol. 9(3), pages 189-206.
    2. Ali Hortaçsu & Chad Syverson, 2004. "Product Differentiation, Search Costs, and Competition in the Mutual Fund Industry: A Case Study of S&P 500 Index Funds," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 403-456.
    3. Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters, in: The Economics of New Goods, pages 207-248, National Bureau of Economic Research, Inc.
    4. Davis, Tim & Ahmadi-Esfahani, Fredoun Z., 2005. "Hedonic Modelling for Australian Wine," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137835, Australian Agricultural and Resource Economics Society.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
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