Domaine Pas de Choix: government intervention in the Champagne market

Colleen E. Haight and Nikolai G. Wenzel

Journal of Entrepreneurship and Public Policy, 2018, vol. 7, issue 1, 51-61

Abstract: Purpose - Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the newAppellation d’Origine Contrôléesystem, forever altering the incentives and output of wine producers. The paper aims to discuss these issues. Design/methodology/approach - As a result, some indigenous varietals have disappeared entirely from the region – and a handful remain only in the vineyards and bottles of a few bold entrepreneurs, constituting less than 1 percent of Champagne production. Findings - The authors assess several traditional explanations (from taste and preferences to agricultural resilience)-and dismiss them as unconvincing. Instead, the authors adopt a public choice framework of regulatory capture to explain the puzzle of thwarted entrepreneurship and consumer choice. Originality/value - This paper is original.

Keywords: Champagne; Quality; Regulation; Consumer choice; Wine appellations; B52; L51; N53; N54 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jepppp:jepp-d-17-00019

DOI: 10.1108/JEPP-D-17-00019

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