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

Author archive: Karl Storchmann

AAWE Working Paper No. 128

This study examines vertical coordination in an emerging Illinois wine industry. Results generally corroborate earlier findings that quality matters, as temporal issues related to grape perishability increase the probability written contracts are used to procure grapes and decrease reliance on informal agreements. Hold-up concerns related to sourcing adequate quality grapes and at risk investments winemaking equipment displace informal contracts with in-house production. Older wineries also rely more on their own vineyards, and larger ones require additional outside supplies. There is also some evidence that a few wineries outsource wine production activities to more experienced and larger wineries.

AAWE Working Paper No. 128

AAWE Working Paper No. 127

It has been a persistent phenomenon in many societies that a large proportion of alcohol consumption takes place in company of other people. While the phenomenon of social or public drinking is well discussed in disciplines as social psychology and anthropology, econo- mists have paid little attention to the social environment of alcohol consumption. This paper tries to close this gap and explains social drinking as a trust facilitating device. Since alcohol consumption tends to make some people (unwillingly) tell the truth, social drinking can eventually serve as a signaling device in social contact games.

AAWE Working Paper No. 127

AAWE Working Paper No. 126

Do well-known restaurants stand the test of time? The objective of this short paper is to review the list of the top ranked restaurants from 1974 to 2010 and examine the sustainability of the grades of these restaurants over time. A new methodology to calculate migration and default rates is presented for selected years over the period under study. It is shown that these rates are relatively stable and low compared to bankruptcy rates. After 24 years, the default rate of top ranked restaurant is only about 32%.

AAWE Working Paper No. 126

The Fellows of the American Association of Wine Economists selected five new Fellows who were inducted at the annual meeting in Princeton, June 7-10, 2012.   Julian Alston is a professor in the Department of Agricultural and Resource Economics at the University of California Davis, and director of the Robert Mondavi Institute Center for Wine Economics. …

Five New Fellows

by Elliott R. Morss, Ph.D.,  November 2012 Introduction The Judgment of Paris in 1976, chronicled in George Taber’s book, was the first in a series of widely reported blind tastings. Below, I summarize the findings from those tastings (and my own – less widely reported). I also report on what research is telling us. I…

The Declining Significance of Wine Tastings

At its Annual Conference in Princeton, the American Association of Wine Economists (www.wine-economics.org) organized a wine tasting called “The Judgment of Princeton.” It was modeled after the 1976 “ Judgment of Paris.” In 1976, British wine merchant Steve Spurrier organized two blind tastings with 9 French wine judges who were associated with the wine industry…

The Judgment of Princeton

by Elliott R. Morss, Ph.D. Introduction What is the state of the US wine market? Is it better for buyers or sellers? And what is popular? These questions are the focus of this article. I start with some aggregate numbers on the global wine industry. I then present the results of a survey done of…

The US Wine Market – A Global Economist’s Perspective (Part 1)

September, 8, 2010, by Elliott Morss, www.morssglobalfinance.com Introduction The article starts by summarizing economic findings on people’s wine selections. It then examines the US wine market. It finishes with suggestions on selecting wines. How People Select Wines Considerable economic analysis has been done on how people choose wine[1]. Summarized in an earlier article, the primary…

The US Wine Market – What to Buy

George E. Johnson (1940-2010) George Johnson, who spent many years as Professor of Economics at the University of Michigan, died in the spring of 2010.  A man of big appetites, and a fine cook, he was known mainly for his scholarly work in the economics of labor markets.  But he was also one of the…

A man of great appetites we will miss…

So maybe wine and liquor monopolies are not all bad! At least that is the conclusion that Katja Seim and Joel Waldfogel arrive at in their recent AAWE Working Paper No. 69 Economics Public Monopoly and Economic Efficiency: Evidence from the Pennsylvania Liquor Control Board’s Entry Decisions Katja Seim and Joel Waldfogel They study the…

Pennsylvania Liquor Monopoly, AAWE Working Paper No. 69

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