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Economic assessment of the Champagne wine qualitative stock mecanism

Published online by Cambridge University Press:  12 October 2006

Jacques Laye  and
Maximilien Laye
Jacques Laye
Affiliation:
L.E.F. UMR INRA-ESR/ENGREF, 14 rue Girardet, CS 4216, 54042 Nancy Cedex, France; laye@nancy-engref.inra.fr
Maximilien Laye
Affiliation:
Laboratoire d'Économétrie de l'École Polytechnique, 1 rue Descartes, 75005 Paris, France; maximilien.laye@shs.polytechnique.fr
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Abstract

In the wine AOC system, the regulation of quantities performed by the professionalorganizations is aimed to smooth the variations of the quality of the wine due to thevariations in the climate that affect the quality of the grapes. Nevertheless, this regulationcould be damaging to the consumers due to the price increase resulting from the reduction ofthe quantities sold on the market. We propose a stochastic control model and a simulation toolable to measure the effects of this mechanism on the producer's profit and the consumer'ssurplus.

Keywords

Contrôle stochastiquestocks régulateurs.
Type
Research Article
Information
RAIRO - Operations Research , Volume 40 , Issue 2: ROADEF 03 , April 2006 , pp. 235 - 251
Copyright
© EDP Sciences, 2006

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