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Demand Under Product Differentiation: An Empirical Analysis of the US Wine Market AgEcon
Davis, Tim; Ahmadi-Esfahani, Fredoun Z.; Iranzo, Susana.
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.
Tipo: Conference Paper or Presentation Palavras-chave: Oversupply; Demand for wine; Product differentiation; Nested logit; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/10390
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