Contracts and Quality in the California Winegrape Industry

Rachael Goodhue, Dale Heien, Hyunok Lee and Daniel Sumner

Review of Industrial Organization, 2003, vol. 23, issue 3, 267-282

Abstract: We analyze the relationship between product quality and contractingchoices using the results of a survey of California winegrape growers.Growers who produce high-quality grapes are more likely to use formalwritten contracts than are growers who produce low-quality grapes.Written contracts for high-quality grapes are more likely to includeprovisions regarding the production process, while written contractsfor low-quality grapes are more likely to include explicit financialincentives for sugar content and other product attributes. Copyright Kluwer Academic Publishers 2003

Keywords: Contract choice; contract design; quality; wine (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (35)

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DOI: 10.1023/B:REIO.0000031371.03322.9e

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