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JWE-Articles
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Journal of Wine Economics Volume 12 | 2017 | No. 4 | Selected Proceedings
»
Price Effects of Establishing a new Sub-AVA within Oregon’s Willamette Valley AVA

Price Effects of Establishing a new Sub-AVA within Oregon’s Willamette Valley AVA

Omer Gokcekus & Clare M. Finnegan
JEL Clasification: D22, Q12, L14
Pages: 345-353
Full Text PDF
Abstract

The creation of new sub-divisions within Oregon’s Willamette Valley American Viticultural Area (AVA) may indicate a desire on the part of well-established wineries to “split” or separate their social groupings from those with lesser qualifications. Once their social clusters have been differentiated, we theorize that these wineries would be able to capitalize on their newly devel- oped distinctiveness and collect larger regional reputation premiums. Based on 2,221 Wine Spectator–rated pinot noirs from between 1984 and 2008, regression analyses demonstrate that regional reputation premiums have significantly increased with the creation of sub- AVAs and that the price-quality ratio gap between sub-AVAs and the rest of Willamette has widened.

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E-Mail: karl.storchmann@nyu.edu

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