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Home
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JWE-Articles
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Journal of Wine Economics Volume 11 | 2016 | No. 2
»
Regulation and Contract Choice in the Distribution of Wine

Regulation and Contract Choice in the Distribution of Wine

Michelle Santiago & Michael Sykuta
JEL Clasification: D23, L14, L22, L66
Pages: 216-232
Full Text PDF
Abstract

The wine industry in the United States has grown tremendously over the past few decades, from fewer than 1,000 wineries in 1980 to upward of 8,500 today. The growth has occurred over a period that has seen substantial changes in the structure of the wine industry, the modes of distribution available to wineries, and the regulations governing them. Most econom- ic research, however, has focused on supply relations between wineries and wine grape growers rather than between wineries and their downstream markets. In this article, we examine win- eries’ contracting behavior with downstream distributors and the effects of industry structure, winery organizational structure, and state laws regarding direct shipment and distribution franchise laws.

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