Economic assessment of the Champagne wine qualitative stock mecanism

Jacques Laye; Maximilien Laye

RAIRO - Operations Research (2006)

  • Volume: 40, Issue: 2, page 235-251
  • ISSN: 0399-0559

Abstract

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

How to cite

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Laye, Jacques, and Laye, Maximilien. "Economic assessment of the Champagne wine qualitative stock mecanism." RAIRO - Operations Research 40.2 (2006): 235-251. <http://eudml.org/doc/249767>.

@article{Laye2006,
abstract = { In the wine AOC system, the regulation of quantities performed by the professional organizations is aimed to smooth the variations of the quality of the wine due to the variations in the climate that affect the quality of the grapes. Nevertheless, this regulation could be damaging to the consumers due to the price increase resulting from the reduction of the quantities sold on the market. We propose a stochastic control model and a simulation tool able to measure the effects of this mechanism on the producer's profit and the consumer's surplus. },
author = {Laye, Jacques, Laye, Maximilien},
journal = {RAIRO - Operations Research},
keywords = {Contrôle stochastique; stocks régulateurs.; wine market; price theory and market structure; stochastic control},
language = {eng},
month = {10},
number = {2},
pages = {235-251},
publisher = {EDP Sciences},
title = {Economic assessment of the Champagne wine qualitative stock mecanism},
url = {http://eudml.org/doc/249767},
volume = {40},
year = {2006},
}

TY - JOUR
AU - Laye, Jacques
AU - Laye, Maximilien
TI - Economic assessment of the Champagne wine qualitative stock mecanism
JO - RAIRO - Operations Research
DA - 2006/10//
PB - EDP Sciences
VL - 40
IS - 2
SP - 235
EP - 251
AB - In the wine AOC system, the regulation of quantities performed by the professional organizations is aimed to smooth the variations of the quality of the wine due to the variations in the climate that affect the quality of the grapes. Nevertheless, this regulation could be damaging to the consumers due to the price increase resulting from the reduction of the quantities sold on the market. We propose a stochastic control model and a simulation tool able to measure the effects of this mechanism on the producer's profit and the consumer's surplus.
LA - eng
KW - Contrôle stochastique; stocks régulateurs.; wine market; price theory and market structure; stochastic control
UR - http://eudml.org/doc/249767
ER -

References

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