Wine Production in Québec: an investigation into the price-quality relationship
Authors: J. François Outreville, HEC Montréal Université de Montréal, Québec, Canada
Wine production in Québec over this period has also grown rapidly with an increased interest for diversied products in terms of quality and price. The growth of supply is related not only to the number of producers but also to the increased varieties of wines proposed. An index of relative firm position in the market based on relative prices has been calculated and we demonstrate that a high price strategy is inversely related to the number of wines produced and the age of the firm. The analysis also demonstrates a positive and signicant relation between price and the variable related to the perceived quality of wines (the jury grades or medals).
Published in Review Enometrica, September 2011