Commitment to commercialization and quality choices in the Champagne wine producer-distributor relationship

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Date

2011

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INRAE


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VERTICAL RELATIONSHIPS QUALITY WINE 


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Jacques-Alexandre J.-A. Laye et al., « Commitment to commercialization and quality choices in the Champagne wine producer-distributor relationship », Archive Ouverte d'INRAE, ID : 10670/1.k7hjqj


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Abstract 0

We study the interaction in the Champagne wine producer/distributor relationship between the commitment of the producer to commercialization of a low quality wine and the high quality adjustment of the distributor. We show that this commitment can allow the producer to acquire all the pro t of the supply chain. However, at equilibrium, the distributor chooses a quality level that is superior to that obtained at the optimum of vertical integration, and manages to get a part of the pro t. The results we obtain allow us to analyze the evolution of wine supply chains when a new distributor appears and enters in competition with the producer.

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