AAEA members present research at ASSA
MILWAUKEE, Dec. 15, 2025 /PRNewswire-PRWeb/ -- AAEA invites media to attend their sessions at the ASSA 2026 Annual Meeting in Philadelphia, PA.
On Sunday, January 4, 2026 at 12:30 pm – 2:15 pm (EST) at the Marriott Philadelphia Downtown, three AAEA members will speak at the session "Asymmetric Information and Organizational Forms in Wine Markets "
Presentations in this session include (speakers are listed first):
Quality Certification under Uncertainty: An Analysis of Wine Competition Ratings
- Gianni De Nicolò, Johns Hopkins University
Wine competitions serve as certifiers of quality by awarding medals that influence consumer choice and producer strategies. Yet current rating protocols generate uncertainty from two sources: \textit{rating risk}, due to variation in jury assignments and score aggregation within competitions, and \textit{competition risk}, arising from inconsistent standards across events. We propose a standardized rating system that addresses rating risk by normalizing judges' scores and grouping wines into statistically significant quality classes. Using data from a wine competition, we show that this method reduces score variance and stabilizes award allocations. Extending the analysis, we use a model of intermediary certifiers to capture competition risk and show that heterogeneity in rating protocols diminishes the informational value of medals, raising consumer search costs and lowering producer profits. Standardization across competitions strengthens the credibility of ratings, improves welfare, and enables more efficient submission strategies for producers.
Wine Cooperatives and Returns on Assets
- Angelo Zago, University of Verona
This paper examines the financial performance of wine cooperatives. It introduces a theoretical model that conceptualizes cooperatives as vertically integrated firms, encompassing both the grape production stage managed by members and the wine-making stage operated by the cooperative itself. This model decomposes the total profitability of the wine value chain into these two distinct stages. The empirical analysis uses data from wine cooperatives in Italy and Spain to test the model's predictions. Additionally, survey data are employed to analyze the distribution of profitability across the two stages. The model suggests that cooperatives managed by professional administrators prioritize profitability in the wine-making segment, while those controlled by members focus on maximizing returns on assets for individual growers.
About Rioja Splitting: Politics or Economics?
- Omer Gokcekus, Seton Hall University
This paper investigates whether Rioja Alavesa's pursuit of a separate Denominación de Origen Calificada (DOC) is driven by economic incentives or political motivations. Using content analysis and regression modeling based on Wine Spectator and Tim Atkin ratings data, the study finds that Rioja Alavesa wines command a significant price premium (16.1%), supporting the economic argument for market differentiation. However, quality ratings do not significantly differ from other Rioja wines, suggesting that branding and perception, rather than intrinsic quality, drive the premium. Additionally, Rioja Alavesa wineries tend to be smaller and less reliant on aging-based classifications, reinforcing concerns about structural disadvantages within the existing system. These findings highlight the economic rationale for a separate DOC while acknowledging the political complexities involved. The paper concludes with policy implications that may apply to other geographical indications experiencing similar tensions.
If you are interested in complimentary press pass for ASSA, please contact Paityn Connolly at [email protected].
ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes three journals, the Journal of the Agricultural and Applied Economics Association (an open access journal), the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit http://www.aaea.org.
Media Contact
Allison Ware, Agricultural & Applied Economics Association, 414-918-3190, [email protected], www.aaea.org
SOURCE Agricultural & Applied Economics Association
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