AAWE, Economics Dept, New York University, 19 W 4th St, 6Fl., New York NY 10012aawe@wine-economics.org

AAWE Working Paper No. 162 – Economics

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AAWE Working Paper No. 162 – Economics

The Market Structure-Performance Relationship Applied to the Canadian Wine Industry

J. François Outreville

Abstract

The purpose of this research is to examine the relationship between market structure and performance in the wine sector using data from two Canadian provinces. Investigation is conducted on alternative hypothesis defined as the Structure-Conduct-Performance (SCP) hypothesis, the Relative-Market-Power (RMP) hypothesis and the Efficiency Structure (ES) hypothesis. The performance is measured by the number of awards gained by wineries. Using regression analysis, we find support to the ES hypothesis. The empirical findings suggest that more research should be done on the efficiency structure of wineries in their respective markets.

This article was written by Karl Storchmann

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