Applied Econometrics Association Series

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1 Applied Econometrics Association Series General Editors: Orhan Güvenen, Emeritus Professor, Erasmus University, Rotterdam; and Henri Serbat, University of Paris 2 The vital importance of econometrics for understanding economic phenomena is increasingly recognized in every field of economics. The discipline is based on scientific processes, which aim to identify, explain and forecast economic phenomena using formalised tools to produce, measure, structure and model the information (Gérard Duru and Henri Serbat, 1991). The Applied Econometrics Association, established 1974, seeks to develop the use of econometric tools by regular updates on the state of the art and the progress made in each specific field, and so to further the transformation of unconnected facts into pertinent information for use in analysis and decision-making. The series was conceived to form a set of working references for advanced students and researchers in each specific field, as well as a guide to development across the discipline more broadly. This exchange of knowledge will be continued permanently by the opening of a debate site on the Internet (http;/ Titles include: Serge Allegrezza and Anne Dubrocard (editors) INTERNET ECONOMETRICS Patrick-Yves Badillo and Jean-Baptiste Lesourd (editors) THE MEDIA INDUSTRIES AND THEIR MARKETS Quantitative Analyses Françoise Bourdon and Jean Bourdon (editors) WAGE ECONOMETRICS AND MODELLING Fabrizio Carlevaro and Jean-Baptiste Lesourt (editors) MEASURING AND ACCOUNTING ENVIRONMENTAL NUISANCES AND SERVICES Arthur Getis, Jeśus Mur and Henry G. Zoller (editors) SPATIAL ECONOMETRICS AND SPATIAL STATISTICS Eric Giraud-Héraud and Marie-Claude Pichery (editors) WINE ECONOMICS Quantitative Studies and Empirical Applications Siv S. Gustafsson and Danièle E. Meulders (editors) GENDER AND THE LABOUR MARKET Econometric Evidence of Obstacles to Achieving Gender Equality Hans Heijke and Joan Muysken (editors) EDUCATION AND TRAINING IN A KNOWLEDGE-BASED ECONOMY Pavlos Karadeloglou (editor) EXCHANGE-RATE POLICY IN EUROPE Pavlos Karadeloglou and Virginie Terraza (editors) EXCHANGE RATES AND MACROECONOMIC DYNAMICS Sandrine Lardic and Valérie Mignon (editors) RECENT DEVELOPMENTS ON EXCHANGE RATES Benoît Mahy, Robert Plasman and François Rycx (editors) GENDER PAY DIFFERENTIALS Cross-National Evidence from Micro-Data

2 David Marsden and François Rycx (editors) WAGE STRUCTURES, EMPLOYMENT ADJUSTMENTS AND GLOBALIZATION Evidence from Linked and Firm-level Panel Data Danièle Meulders, Robert Plasman and François Rycx (editors) MINIMUM WAGES, LOW PAY AND UNEMPLOYMENT Carine Peeters and Bruno van Pottelsberghe de la Potterie (editors) ECONOMIC AND MANAGEMENT PERSPECTIVES ON INTELLECTUAL PROPERTY RIGHTS Emile Quinet and Roger Vickerman (editors) THE ECONOMETRICS OF MAJOR TRANSPORT INFRASTRUCTURES Philippe Thalmann and Milad Zarin-Nejadan (editors) CONSTRUCTION AND REAL ESTATE DYNAMICS Applied Econometrics Association Series Standing Order ISBN (cased) and (paperback) (outside North America only) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and one of the ISBNs quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England

3 Wine Economics Quantitative Studies and Empirical Applications Edited by Eric Giraud-Héraud Director of Research, Institut National de la Recherche Agronomique, France and Marie-Claude Pichery Professor Emeritus, University of Bourgogne, France

4 Selection, introduction and editorial content Eric Giraud-Héraud and Marie-Claude Pichery 2013 Individual chapters Contributors 2013 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2013 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN ISBN (ebook) DOI / This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress.

5 Contents List of Figures List of Tables Acknowledgements Notes on Contributors Introduction and Overview 1 Eric Giraud-Héraud and Marie-Claude Pichery Part I Alcohol Consumption and Welfare 1 Life Satisfaction and Alcohol Consumption: An Empirical Analysis of Self-Reported Life Satisfaction and Alcohol Consumption in OECD Countries 11 Jan Bentzen and Valdemar Smith 1.1 Introduction Literature review and issues in the happiness income link Modelling of the happiness alcohol relationship Alcohol consumption and life satisfaction Estimating the happiness alcohol model Conclusions 22 2 Alcohol Demand, Externalities and Welfare-Maximising Alcohol Taxes 28 James J. Fogarty 2.1 Introduction The alcohol market Optimal alcohol tax model Calibration case study Conclusion 45 3 The Demand for (Non)Alcoholic Beverages in France and the Impact of Advertising 49 Ruben Hoffmann and Yves Surry 3.1 Introduction Model framework Data and estimation procedure Empirical results Conclusion 65 ix xi xv xvi v

6 vi Contents Part II Consumer Behaviour and Prices 4 The Economic Value of Wine Names That Reference Place in the US Market: Analysis of Champagne and Sparkling Wine 73 Hyunok Lee and Daniel A. Sumner 4.1 Introduction Previous econometric research on wine place names Data source and data description Econometric estimation of the hedonic price equations with market data Econometric results and interpretations of the price equation for sparkling wine sold in the United States Conclusion 85 5 The Price of Wine: Does the Bottle Size Matter? 88 Jean-François Outreville 5.1 Introduction Does the bottle matter? A measure of the relative scaled price index The market price of large bottles at auctions Conclusion and suggestions for further research 97 6 Wine Judging and Tasting 102 Matteo M. Galizzi 6.1 Introduction Literature review The wine judging system and expert panels in Italy: a price formation model? The three main professional guides in Italy, and their data on wines and awards Empirical analysis and results: the awards by the professional guides in Conclusion Willingness to Pay for Appellation of Origin: Results of an Experiment with Pinot Noir Wines in France and Germany 129 Pascale Bazoche, Pierre Combris, Eric Giraud-Héraud and Jean-Baptiste Traversac 7.1 Introduction Willingness to Pay (WTP) for Protected Designation of Origin and other wine characteristics Experiment design and method Data and results Conclusion 142

7 Contents vii Part III Wine Ranking and Financial Issues 8 How Best to Rank Wines: Majority Judgement 149 Michel Balinski and Rida Laraki 8.1 Introduction Traditional amalgamation schemes and the Judgement of Paris Why the traditional amalgamation schemes fail Majority judgement Majority judgement in use Conclusion Wine as an Alternative Asset Class 173 Philippe Masset and Jean-Philippe Weisskopf 9.1 Introduction Investment opportunities on the market for fine wine Academic literature Empirical study of the market for fine wine The case of the US wine market The case of the Swiss wine market Conclusion Financial Reaction to the Business Cycle in Periods of Difficulties: The Case of French Wine Companies 200 Paul Amadieu, Jean-Pierre Couderc and Jean-Laurent Viviani 10.1 Introduction Theoretical foundations of hypotheses Data, variables and method Results Conclusion 221 Part IV Intermediary Markets and Strategic Decisions 11 The Technical Efficiency of Wine Grape Growers in the Murray Darling Basin in Australia 231 Tim Coelli and Orion Sanders 11.1 Introduction Sample data and variable selection Methods Empirical Results Conclusion Product Assortment and the Efficiency of Farms 250 Gordana Manevska-Tasevska 12.1 Introduction Dimensions of product assortment 253

8 viii Contents 12.3 Method Data and variables Results Discussion and conclusions Determinants of Wine-Bottling Strategic Decisions: Empirical Evidence from the Italian Wine Industry 266 Giulio Malorgio, Cristina Grazia, Francesco Caracciolo and Carla De Rosa 13.1 Introduction Conceptual framework Data, variables and model specification Results Discussion and final remarks Export Intentions of Wineries 297 Isabel Bardají, Belén Iráizoz and Julio Estavillo 14.1 Introduction Theoretical foundation and hypothesis development Research design Results Conclusion 312 Part V New Topics 15 Wine Tourism and On-Site Wine Sales 327 Françoise Bensa and Marie-Claude Pichery 15.1 Introduction The actors of wine tourism and their expectations Wine tourism in terms of experiential marketing Methodology Analysis of results Conclusion The High and Rising Alcohol Content of Wine 350 Julian M. Alston, Kate Fuller, James Lapsley, James T. Lapsley? George Soleas and Kabir Tumber 16.1 Introduction Increasing sugar content in California grapes International evidence on the rising alcohol content of wine Regressions of alcohol percentage against the heat index Conclusion 361 Index 365

9 List of Figures 1.1 The life satisfaction and aspirations connection OECD alcohol consumption: decreasing dispersion Demand for alcohol by country, beverage type, and consumption level Tax as a percentage of total purchase price in Welfare implication of an alcohol tax Per capita consumption (volume), 1975= Per capita expenditure, 1975= Conditional budget shares Per capita advertising expenditure, 1975= Distribution of real price for French sparkling wines Relationship between bottle size (number of litres) and the scaled price index for seven Champagne producers Relationship between bottle size (number of litres) and the average price index by region of production Relationship between bottle size and the adjusted price index for Champagne compared to the non-adjusted price index Relationship between bottle size and the adjusted price index for Bordeaux wines at auctions The wines refereed by the SF-GR guide per region The wines awarded by the SF-GR guide per region The wines assessed by the AIS guide per region The wines awarded by the AIS guide per region The wines assessed by the VER guide per region The wines awarded by the VER guide per region The awarded/assessed wines ratio per region and per guide Means and 95% confidence intervals of the proportion of participants refusing to buy Means and 95% confidence intervals of positive WTP Mean and 95% confidence intervals according to wine ranking in each situation French wine exports in volume and value French wine production and consumption Evolution of the global performance of the wine trade in France Evolution of the global performance corporations vs. cooperatives Evolution of the global performance producers vs. wine merchants 210 ix

10 x List of Figures 11.1 Regional coverage of the ABARES survey of irrigation farms in the MDB Histogram of technical efficiencies for wine grape specialists in the Murrumbidgee and Murray survey regions Histogram of irrigation water shadow prices for wine grape specialists in the Murrumbidgee and Murray survey regions Histogram of scale elasticities for wine grape specialists in the Murrumbidgee and Murray survey regions Winery s long-term and short-term strategic decisions Italian wine supply chain structure and organization: actors and flows The effect of winery s size and vertical relationship on bottled volumes The degree of commitment to the DOC/DOCG system and its role in long-term and short-term strategic decisions regarding investment in bottling Model structure 338 A1.1 Measuring the beverage structure: Cos 24

11 List of Tables 1.1 Total alcohol consumption and life satisfaction in 21 OECD countries, 1961 and The structure of alcohol consumption (A S ) and the level of alcohol consumption (A L ), 1961 and Fixed effects parameter estimates of the life satisfaction model, First-differences parameter estimates of the life satisfaction model, equation (4), Alcohol consumption, per litres of alcohol, population Optimal alcohol tax estimates Alternative model specifications estimated Hypothesis tested of model specifications Testing for the effect of the Evin Law Parameter estimates Short-run and long-run Hicksian expenditure and price elasticities Advertising elasticities Mean price of US Sparkling wine and wine mislabelled as US Champagne by broad US region Mean price of California sparkling wine and wine mislabelled as US Champagne by detailed California region Descriptive statistics on score and price for French sparkling wines Log price regressions for US sparkling wine including US wine labelled as Champagne, without Vintage Log price regressions for US sparkling wine including US wine labelled as Champagne, with Vintage Regression analysis for US and French sparkling wine prices using specific place name and designation for use of name Champagne for American wines Wine bottle size Relationships between the price index and the price of the empty bottle Test of segmented markets Sample of companies, transactions realised during July 2009 to June The determinants of higher number of awards by professional guides 121 xi

12 xii List of Tables 7.1 Characteristics of the two samples of participants Probit marginal probabilities of factors affecting participants decision to buy Mean positive bids and standard deviations according to product and condition Judges grades Judges ranks Majority votes pair-by-pair UIΠSensorial Analysis Tasting Sheet for Wine Judging Competitions, still wines, A judge circles their evaluations in each row Judgement of Paris: grades given to wines, their majority-grades italicised UIΠScore Sheet, still wines, A judge circles their evaluations in each row A jury s grades for three white wines, les Citadelles du Vin, A jury s grades for three white wines, les Citadelles du Vin, 2006 (verbal grades) Investment-grade wines Correlation between wine and classic asset classes Wine and financial asset statistics in the US Wine and financial asset statistics in Switzerland Expected impact of companies characteristics and management policies on the sensitivity to business cycle Descriptive statistics of independent variables The impact of companies characteristics on sensitivity to the business cycle The impact of companies strategies on sensitivity to the business cycle The impact of companies financial strategies on sensitivity to the business cycle The impact of B/W companies characteristics on sensitivity to the business cycle Comparison of worst- and best-performing companies strategies Companies performance (ROA) sensitivity to the business cycle by region Comparison of companies strategies by region. Effect on ROA ABARES irrigation survey subset: wine grape specialists Irrigation water allocations in major areas of the southern Murray Darling Basin, to Summary statistics, ABARES irrigation survey: wine grape specialists in Murrumbidgee and Murray survey regions 237

13 List of Tables xiii 11.4 Hypothesis tests to determine the significance of the inefficiency, translog, and technical change parameters of the estimated production frontier Estimated translog stochastic production frontier parameters Descriptive statistics: input, output and assortment characteristics. Three-year mean values for Correlation matrix: grape assortment characteristics Tobit regression analysis: Ordinary DEA and bias-corrected technical efficiency (TE) scores regressed on selected assortment characteristics Truncated regression analysis: ordinary DEA and bias-corrected technical efficiency (TE) scores regressed on selected assortment characteristics Explanatory variables: long term and short-term strategic choice of quantity Long-term and short-term winery strategic choices sequential probit results Short-term winery strategic choices on quantity Heckman s two-step estimation Technical details of survey Sample characteristics Rotated intention factor loadings Explanatory variables for intention formation Distribution of winegrowers (in VQPRD) depending on the size of the VQPRD production Number of hectolitres sold in accordance with distribution channels Wine tourism activities Distribution channels Percentage of increase in on-site sales after setting up wine tourism activities Adjustment indices Model estimation Influence of the length of accommodation and catering on on-site sales Characterisation of classes Events Customers Sales and attendance Investments and communication Average person who buys wine during a wine-tourism activity (in %) 344

14 xiv List of Tables Among people who buy wine, the average people who become loyal customers (who bought at least once per year, in %) Trends in sugar content (degrees Brix) of California wine grapes, California Brix Regression Results, annual observations, Alcohol content and heat index: base values, and percentage changes, by colour of wine and country Alcohol content and heat index: base values, and percentage changes, by colour of wine and region of production Regressions of alcohol percentage against trend and temperature, A1.1 The consumption of beer, wine and spirits, 1961 and 2005 (litres per capita, 15+ years) 22 A1.2 Panel unit root test result: the life satisfaction index (LS), real income (Y) and alcohol consumption (A, A L,A S ), A7.1 Factors influencing the level of positive reservation prices 143 A10.1 Sample structure 225 A10.2 Variables description and computation 225 A14.1 Statements about export intentions 314 A14.2 Attitudes, perceived behavioural control and subjective norms 316 A15.1 Domain classification and wine tourism activities (responses) 346 A15.2 Domain classification and wine tourism activities (chi 2 test) 347 A15.3 Communication relation between winemakers and trade organisation or region (chi 2 test) 348

15 Acknowledgements This book, containing as it does contributions from experts from Europe, America and Australia, aims to present insights into a variety of problems and situations encountered by wine professionals around the world. Some chapters are derived from presentations at meetings of the European Association of Wine Economists (EuAWE) in Angers (France, June 2011) and Coimbra (Portugal, June 2012). Others have been written specifically for this book. We have been greatly helped by Alejandro Fuentes Espinoza, who has assisted in the editorial preparation, and by Claudia Tscheitschonigg, who took the time needed to read it carefully and correct the inevitable linguistic errors. We would also like to express our gratitude to the AEA; without its assistance, you would not be holding this book in your hands. xv

16 Notes on Contributors Julian Alston is a professor in the Department of Agricultural and Resource Economics, and Director of the Robert Mondavi Institute Center for Wine Economics at the University of California, Davis, USA. His research fits within the broad subject of the economics of government policy affecting agriculture, natural resources, and economic development, with recent emphasis on agricultural R&D and productivity, obesity, food security and poverty, and associated policies. He also studies the economics of wine. Paul Amadieu is Associate Professor at Montpellier University, France, and a member of Montpellier Research Management (MRM). His research focuses on the interpretation of financial information and analysis of business performance, particularly in the wine world. Michel Balinski, a Williams College graduate, studied economics at MIT and mathematics at Princeton University. His academic affiliations include Princeton University, the Wharton School at the University of Pennsylvania, the City University of New York, Yale University, and the State University of New York at Stony Brook. He has been Directeur de Recherche (CNRS) since 1982 and Director of the Laboratoire d Économétrie of the École Polytechnique (Paris, France) ( ). He is the founding editor of the journal Mathematical Programming, and a past president of the Mathematical Optimization Society. His principal interest is the theory and applications of ranking contestants and the design of electoral systems. Isabel Bardají is Professor of Agricultural Economics and Deputy Director of CEIGRAM (Centro de Estudios e Investigación para la Gestión de Riesgos Agrarios y Medioambientales [Research Centre for the Management of Agricultural and Environmental Risks]) at the Technical University of Madrid, Spain. In 1992 she was a visiting scholar at California University in Davis, USA, specialising in wine economics, and since then she has conducted several research projects and published some papers in this field. She is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). Her research interests are agricultural price analysis, food policy, international markets and rural development. Pascale Bazoche is a research engineer at the French National Institute for Agricultural Research (INRA). Her PhD thesis proposed both empirical and theoretical studies of the wine sector. Her current research focuses on consumer behaviour as a determinant of industrial strategies and public policies. xvi

17 Notes on Contributors xvii Françoise Bensa is Maître de Conférences in Marketing, in charge of the professional teaching programme Commerce des Vins et Oenotourisme, a graduate bachelor at the Institut Universitaire de la Vigne et du Vin Jules Guyot at the University of Bourgogne (Dijon, France). Her research interests currently extend to marketing in the field of wine and tourism. Jan Bentzen is Professor of Economics at Aarhus University, Denmark. He is a member of the EuAWE (European Association of Wine Economists), VDQS (Vineyard Data Quantification Society) and the American Association of Wine Economists. His research interests are in energy economics, alcohol consumption analyses and sustainability. Francesco Caracciolo is a post-doctoral research fellow at the Department of Agricultural Economics and Policy, University of Naples Federico II, Italy. His research interests include consumer preferences, food demand analysis and the econometrics of programme evaluation. He is a member of the American Association of Wine Economists. Tim Coelli is Adjunct Professor at the University of Queensland in Brisbane, Australia. He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). His research is concerned with the development and application of econometric methodologies in efficiency and productivity analysis, economic development and growth, industry economics and industrial organisation, public sector economics, agricultural economics and health economics. Pierre Combris is Research Director at the French National Institute for Agricultural Research (INRA), Paris. He was a member of the French National Food Council (CNA) from 2003 to He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). His research interests are in the analysis of food consumption trends and the elicitation of food preferences using experimental economics and sensory methods. He is also interested in food policies, and he participated in the setting up of two observatories (food consumption and food quality). Jean-Pierre Couderc is Professor of Finance at Montpellier SupAgro and a senior member of the UMR Marchés, Organisations, Institutions et Stratégies d Acteurs (Unité Mixte de Recherche MOISA). His research interests lie in the governance and performance of small businesses, particularly in the agribusiness and wine sector. He is a co-editor of books about wine economics and wine firm management. Carla De Rosa is a research fellow at the Department of Agricultural and Food Science, University of Bologna, Italy. Her research interests include data analysis in the food market and econometrics with an emphasis on organisation and supply chain analysis in the wine sector.

18 xviii Notes on Contributors Julio Estavillo is an associate professor in the Department of Agricultural Economics and Social Sciences at the Technical University of Madrid, Spain. He obtained his MS in Industrial Economics at the Carlos III University of Madrid in His current research interests are agricultural risk analysis, international markets and rural development. James J. Fogarty is Assistant Professor in Economics at the School of Agricultural and Resource Economics of the University of Western Australia, Perth, Australia. His current research interests lie in the area of food and alcohol economics; with an emphasis on incorporating scientific knowledge about food and alcohol products into economic models. The underlying theme of his current research programme is the use of insights from economic analysis to inform public policy choices in areas such as alcohol taxation levels and the regulatory requirements imposed on restaurants. Kate B. Fuller is a post-doctoral scholar in the Department of Agricultural and Resource Economics at the University of California, Davis, USA. Her dissertation topic was the economics of Pierce s Disease of wine grapes, and policies designed to curb the spread and impact of the disease. She now studies the economics of wine grape production, agricultural pests and diseases, and the effects of agricultural policies. Matteo M. Galizzi is an ESRC future research leader fellow and a fellow at the Department of Social Policy and London School of Economics Health and Social Care UK, a research fellow at the Centre for the Study of Incentives in Health (King s College London), a research affiliate of the LSE Behavioural Research Lab and an associate research professor at the Wines and Spirits Markets Team at BEM (Bordeaux, France). His main research interests are in experimental and behavioural economics applied to health and nutrition behaviour. He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). Eric Giraud-Héraud is Research Director at the French National Institute for Agricultural Research (INRA), and Professeur associé at the École Polytechnique (Paris, France). He was the President of the European Association of Wine Economists ( ) and is currently one of the members of the Scientific Council of the Institut des Sciences de la Vigne et du Vin (ISVV) at Bordeaux. He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). His research focuses on industrial organisation and experimental economics. His works deals with the economics of food (economic efficiency, competitiveness, public regulation of supply, quality labels and consumer behaviour). Cristina Grazia is a research fellow at the Department of Agrifood Sciences and Technologies, University of Bologna, Italy. Her research interests

19 Notes on Contributors xix include public and private quality standards in agrifood supply chains, quality standards in international trade and agrifood supply chain organisation. In the field of wine economics, her research focuses on wine supply chain organisation and wineries strategies towards quality. Ruben Hoffmann is a researcher at the Department of Economics at the Swedish University of Agricultural Sciences (SLU) and he also works part time at the EPOK, the Swedish Centre for Organic Food and Farming. His thesis dealt with quality policy, market structures and investment behaviour in the food marketing chain. Since then he has conducted research in industrial organisation and production economics, and his main areas of interest include different aspects of quality in and organisation of the food marketing chain. Belén Iráizoz is Associate Professor of Applied Economics in the Department of Economics at the Public University of Navarra, Spain. Her current research interests are regional and agricultural economics. She has been published in Agricultural Economics, Agricultural Systems, Applied Economics, Environment and Planning, European Urban and Regional Studies, Agribusiness and Outlook on Agriculture. Jim T. Lapsley is Adjunct Associate Professor in the Department of Viticulture & Enology at the University of California, Davis, and Academic Researcher at the UC Agricultural Issues Center, USA. His main areas of research are the economics of wine production and marketing, and the history of California wine. He has co-edited, along with Kirby Moulton, Successful Wine Marketing, which was awarded the OIV Grand Prize in 2001 for the Best Book on Wine Economics. Rida Laraki is Chargé de Recherche at CNRS, Laboratoire d Économétrie, Professeur, Département d Économie, École Polytechnique, Palaiseau, France, and Chercheur Associé, Équipe Combinatoire et Optimisation, Université Pierre et Marie Curie, Paris, France. His main areas of interest are game theory, social choice, optimisation and economic theory. Hyunok Lee is an economist in the Department of Agricultural and Resource Economics, University of California, Davis, USA, which she joined after a PhD at the University of Maryland and several years with the US Department of Agriculture. Her current research focuses on the economics of California agriculture, including climatic change, policy and trade. Giulio Malorgio is an associate professor in the Agricultural and Food Science Department, University of Bologna. He is Managing Editor of the international review New Medit, and a national expert for the Italian Ministry of Agriculture, Food and Forestry. His main fields of research concern agribusiness, the Mediterranean agrifood system, and supply chain analysis in agrifood sectors such as fruit and vegetables, wine and fisheries.

20 xx Notes on Contributors Gordana Manevska-Tasevska is a researcher at the AgriFood Economics Centre of the Swedish University of Agricultural Sciences (SLU). She has a PhD in Business Management from SLU, with a dissertation on farm efficiency of grape-growing family farms and policy influence on farm performance. Her main research focuses on the competitiveness of agricultural production and incorporates issues related to resource use, farm structure, behavioural decision making, knowledge management and rural development policy evaluation. Philippe Masset is an assistant professor at the École Hôtelière de Lausanne (EHL), Switzerland. He is currently working on research projects related to wine as an alternative asset class and current trends in hospitality finance. He is a member of the EuAWE (European Association of Wine Economists), the VDQS (Vineyard Data Quantification Society) and of the American Association of Wine Economists. His research focuses on alternative investments, risk management and real estate finance. Jean-François Outreville is Adjunct Professor of Finance and Risk Management at HEC Montreal, Canada, and a research fellow at ICER-Turin, Italy. He has participated as an economist at the United Conference on Trade and Development (UNCTAD) in Geneva. He has published in academic and business journals on the economic role of financial intermediaries and insurance activities. He has also worked on pricing models and the pricing strategies of wine producers. He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). Marie-Claude Pichery is Professor of Economics and Econometrics at the University of Bourgogne (Dijon, France) and a researcher at the Laboratoire d Économie et de Gestion (CNRS). She gives lectures in Wine Economics at the Institut Universitaire de la Vigne et du Vin Jules Guyot (IUVV). Her fields of research are in the wine industry and territorial aspects of vineyards. She was a president of the European Association of Wine Economists ( ) and is currently a member of the scientific advisory council of the Chaire UNESCO Culture et Traditions du Vin hosted by the University of Bourgogne. She is a member of the EuAWE (European Association of Wine Economists) and a founding member of the VDQS (Vineyard Data Quantification Society). Orion Sanders is a research economist at the Australian Bureau of Agricultural and Resource Economics and Sciences in Canberra, Australia. He specialises in mathematical and computational economics, with specific application to agricultural and natural resource economics. Valdemar Smith is Professor of Economics at Aarhus University, Denmark. His research areas include industrial organisation and corporate governance, economics of innovation and R&D, regional growth and inequalities, the wine market and alcohol consumption.

21 Notes on Contributors xxi George Soleas is the Senior Vice President of Logistics and Quality Assurance of the Liquor Control Board of Ontario, Canada. He currently chairs the National Quality Assurance Committee of the Canadian Association of Liquor Jurisdictions, and he represents the LCBO on the Expert Committee of the World Wide Trade Group (WWTG), the Interagency Council on Food Safety, and the Advisory Board of the Cool Climate Oenology and Viticulture Institute (at Brock University, Ontario) where he is also a professional affiliate. His areas of interest include the analytical and biochemical aspects of beverage alcohol constituents. Daniel A. Sumner is Director of the Agricultural Issues Center at the University of California, and the Frank H. Buck, Jr. Chair Professor in the Department of Agricultural and Resource Economics at the University of California, Davis, USA. He holds a PhD from the University of Chicago and has served at North Carolina State University and the US Department of Agriculture. His research, teaching and outreach focus on the economic and policy issues facing agriculture. Yves Surry is Professor at the Department of Economics at the Swedish University of Agricultural Sciences, Uppsala, Sweden. His research deals with the modelling of agrifood sectors and markets, and the evaluation of agricultural and trade policies. Jean-Baptiste Traversac is a researcher at the French National Institute for Agricultural Research (INRA). He received his PhD from the University of Bourgogne for a thesis on the impact of institutional arrangements on the governance of the French wine industry. His research interests include the role of mandatory programs on the regulation of food markets and short chain delivery by farmers (that is, producer strategies) for diversification and consumer access. Kabir P. Tumber is a research associate in the Department of Agricultural and Resource Economics at the University of California (UC), Davis, USA, where he acquired his MS from the Department of Agricultural and Resource Economics. His work primarily focuses on data analysis directly relating to grape and wine economics. Additionally, he has worked to build UC Davis Cost and Return Studies for various agricultural commodities throughout the state of California. Jean-Laurent Viviani is Professor of Finance at IGR-IAE of Rennes, France, and a senior member of the Centre de Recherche en Économie et Management (CREM). His research interests include risk management, financial management and the performance of banks and companies (particularly in the agribusiness and wine sector). He has published several papers on the wine industry, in the International Journal of Wine Business Research, Journal of Wine Economics, Agribusiness, and European Review of Agricultural Economics.

22 xxii Notes on Contributors He is a member of the EuAWE (European Association of Wine Economists) and the VDQS (Vineyard Data Quantification Society). Jean-Philippe Weisskopf is an assistant professor and researcher at the École Hôtelière de Lausanne, Switzerland. He conducts research in the areas of family business, and wine as an alternative investment.