Category Signaling: Biodynamic and Organic Winemaking in Alsace
We propose that category membership can operate as a collective market signal for quality. This requires that gaining category membership is more costly for low-quality producers. The strength of such signals increases with the distinctiveness, or contrast, of the category. Our empirical study focuses on biodynamic and organic viticulture in Alsace. The codes for both categories proscribe the use of fertilizers and pesticides. But the biodynamic category has higher contrast due to additional farming rules and eccentric practices that make it stand out to a considerable degree. And, unlike the organic category, biodynamics is not perceived to overlap significantly with sustainable viticulture. We find that wineries of higher quality have higher hazards of becoming biodynamic but not organic. Ratings by critics tasting blind increase significantly for wineries after they become members of either the biodynamic or organic categories. However, a parallel analysis finds that ratings by critics who know the identity of the producer favor biodynamic but not organic wines.
|Date of creation:||Apr 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (650) 723-2146
Web page: http://gsbapps.stanford.edu/researchpapers/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ali-Kein, Hela Hadj & Lecocq, Sebastien & Visser, Michael, 2007.
"The Impact of Gurus: Parker Grades and EN PRIMEUR Wine Prices,"
37292, American Association of Wine Economists.
- HélaHadj Ali & Sébastien Lecocq & Michael Visser, 2008. "The Impact of Gurus: Parker Grades and "En Primeur" Wine Prices," Economic Journal, Royal Economic Society, vol. 118(529), pages F158-F173, 06.
- Hadj Ali H. & Lecocq S. & Visser M., 2007. "The impact of gurus: Parker grades and en primeur wine prices¤," Working Papers ERMES 0718, ERMES, University Paris 2.
- Héla Hadj Ali & Sébastien Lecocq & Michael Visser, 2005. "The impact of gurus : Parker grades and en primeur wine prices," Research Unit Working Papers 0507, Laboratoire d'Economie Appliquee, INRA.
- Giacomo Negro & Michael T. Hannan & Hayagreeva Rao, 2010. "Categorical contrast and audience appeal: niche width and critical success in winemaking," Industrial and Corporate Change, Oxford University Press, vol. 19(5), pages 1397-1425, October.
When requesting a correction, please mention this item's handle: RePEc:ecl:stabus:2101. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.