New economic studies reveal how information gaps shape the global wine industry

Researchers from the Agricultural & Applied Economics Association (AAEA) will present new findings on wine markets at the ASSA 2026 Annual Meeting in Philadelphia. The session, titled "Asymmetric Information and Organizational Forms in Wine Markets," is scheduled for Sunday, January 4, 2026, from 12:30 pm to 2:15 pm at the Marriott Philadelphia Downtown. Three AAEA members will discuss their recent studies on how information gaps and organizational structures affect the wine industry.

Gianni De Nicolò of Johns Hopkins University will present research on the reliability of wine competition ratings. His analysis highlights two main sources of uncertainty: rating risk, which comes from differences in jury assignments and score aggregation within competitions, and competition risk, which arises from inconsistent standards across different events. De Nicolò proposes a standardized rating system that normalizes judges’ scores and groups wines into statistically significant quality classes. Using data from a real wine competition, he demonstrates that this approach reduces score variance and leads to more stable award outcomes. The study also uses a model of intermediary certifiers to show that inconsistent rating protocols across competitions reduce the value of medals for consumers and producers alike. According to De Nicolò, standardizing rating systems would improve the credibility of awards, lower consumer search costs, and help producers make more efficient decisions about which competitions to enter.

Angelo Zago from the University of Verona will share his work on the financial performance of wine cooperatives. Zago’s theoretical model treats cooperatives as vertically integrated firms that manage both grape production by members and wine-making by the cooperative itself. The research breaks down profitability into these two stages and uses data from Italian and Spanish wine cooperatives to test the model’s predictions. Survey data further reveal how profits are distributed between grape growers and the cooperative’s wine-making operations. Zago finds that cooperatives managed by professional administrators tend to focus on maximizing profits in wine-making, while those controlled by member-growers prioritize returns for individual grape producers.

Omer Gokcekus of Seton Hall University will discuss his investigation into Rioja Alavesa’s efforts to obtain a separate Denominación de Origen Calificada (DOC) designation. The study examines whether this move is motivated by economic or political factors. By analyzing content and running regression models based on ratings from Wine Spectator and Tim Atkin, Gokcekus finds that Rioja Alavesa wines command a price premium of 16.1 percent compared to other Rioja wines. However, there is no significant difference in quality ratings between Rioja Alavesa and other Rioja wines, suggesting that branding and consumer perception are driving higher prices rather than intrinsic quality differences. The research also notes that Rioja Alavesa wineries are generally smaller and less dependent on aging-based classifications, which may put them at a disadvantage under current regulations. These findings support an economic rationale for seeking a separate DOC but also acknowledge the political challenges involved.

The AAEA was founded in 1910 and has over 2,500 members worldwide who work in academia, government, industry, and non-profit organizations. The association publishes several journals and provides resources for research in agriculture, food, health, environment, and international development. Media interested in attending the ASSA meeting or learning more about these presentations can contact AAEA representatives for press credentials.