The Pricing Efficiency of German Wine Cooperatives: A Hedonic Metafrontier Approach

Rebecca Hansen and Sebastian Hess

No 344240, GEWISOLA 63rd Annual Conference, Goettingen, Germany, September 20-22, 2023 from GEWISOLA

Abstract: Cooperatives have long been criticised for their inefficiency due to high internal coordination costs and inefficient decision-making. This is a particular disadvantage in the production and marketing of agri-food products that have heterogeneous (hedonic) quality attributes. However, cooperatives continue to be widespread in agriculture, notably in the wine sector, because they can achieve scale economies and reduce transaction cost for their members. This paper compares the efficiency of cooperatives and non-cooperatives in the German wine sector with respect to their ability to place wines on the market at prices above their measurable quality attributes. The results from a stochastic metafrontier panel of 1,223 wine prices from two wine guides suggest that consumers should purchase wine from cooperatives if they are seeking market prices that correspond closely with a wine’s quality. In turn, members of wine cooperatives should ask themselves why non-cooperatives are typically better at attracting an even greater willingness to pay for the respective quality of their wines.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2023-09-01
New Economics Papers: this item is included in nep-agr and nep-hme
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/344240/files/134_Hansen.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi23:344240

DOI: 10.22004/ag.econ.344240

Access Statistics for this paper

More papers in GEWISOLA 63rd Annual Conference, Goettingen, Germany, September 20-22, 2023 from GEWISOLA
Bibliographic data for series maintained by AgEcon Search ().