Demand Under Product Differentiation: An Empirical Analysis of the US Wine Market

Tim Davis, Fredoun Z. Ahmadi-Esfahani and Susana Iranzo

No 10390, 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand from Australian Agricultural and Resource Economics Society

Abstract: Oversupply has posed a number of problems for the Australian wine industry in recent times. When disaggregated from the industry level, however, the problem can be better described as a range of attribute-specific disequilibria. To date, solutions to this problem have predominantly revolved around reducing output through crop thinning or vine pulling. This paper proposes a different approach by suggesting that disequilibria may be reduced by gaining a better understanding of the demand for Australian wine. A discrete choice model of product differentiation is used to estimate the demand for wine in the United States, Australia's second largest export market. Implications of the analysis are explored.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 23
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare07:10390

DOI: 10.22004/ag.econ.10390

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