Eugenio Pomarici

An empirical investigation of rewards’ effect on experimental auctions outcomes

We examine the effect of earned participation rewards on willingness to pay (WTP) bids in experimental auctions. Our results show that when subjects are provided with a fixed reward, they bid more than those who had to earn their reward.

Do Consumers Want More Nutritional and Health Information on Wine Labels? Insights from the EU and USA

The global strategy to reduce the harmful use of alcohol launched in 2010 by the World Health Organization includes, amongst several areas of recommended actions, providing consumer information about, and labelling, alcoholic beverages to indicate alcohol-related harm. Labelling requirements worldwide for alcoholic drinks are currently quite diverse and somewhat limited compared to labelling on food products and on tobacco. In this context, the current paper contributes to the academic and political debate on the inclusion of nutritional and health information on wine labelling, providing some insights into consumer interest in, and preferences for, such information in four core wine-producing and -consuming countries: Italy, France, Spain, and the United States of America. A rating-based conjoint analysis was performed in order to ascertain consumer preferences for different formats of additional information on wine labels, and a segmentation of the sample was performed to determine the existence of homogeneous groups of consumers in relation to the degrees of usefulness attached to the nutritional and health information on wine labels. Our results highlight the interest expressed by European and United States consumers for introducing nutrition and health information on wine labels. However, the results of conjoint analysis show some significant differences among stated preferences of the information delivery modes in different countries. In addition, segmentation analysis reveal the existence of significant differences between consumer groups with respect to their interest in receiving additional information on wine labels. These differences are not only linked to the geographic origin of the consumers, or to socio-demographic variables, but are also related to wine consumption habits, attitudes towards nutritional information, and the degree of involvement with wine. This heterogeneity of consumer preferences indicates a need for a careful consideration of wine labelling regulations and merits further investigation in order to identify labelling guidelines in terms of the message content and presentation method to be used.

Health warnings on wine: a consumer perspective

Purpose – The purpose of this paper is to investigate consumers’ interest and preference for health warnings on wine label, and the key socio-demographic and attitudinal variables driving this interest. Design/methodology/approach – Data were gathered, by a professional marketing company, through an on line survey with a sample of 300 Italians, aged over 18, consuming wine at least once a month. Findings – Respondents were interested in receiving more information on nutritional and health features of wine through the label, and would also like to obtain information about the warnings about possible side effects related to excessive wine consumption. The most relevant variables influencing positive interest toward this information are gender (female), age (younger cohort), education level (higher), presence of children in the household and being the main responsible of grocery shopping. Research limitations/implications – The research was limited by being conducted only in Italy, using explorative methodol...

Economic and Social Impacts of Climate Change on Wine Production

Climate change is one of the most debated scientific issues and is a relevant concern for the wine industry everywhere in the world because it affects the production and the quality of wine grapes and wine. Economic and social impacts of climate change are considered, highlighting the main categories of analysis which refer to the effects and adaptation strategies that operators are already facing (short term) and those that are forecasted to occur in the future (long term). The proposed framework of analysis has been used to present a literature review of the main research contributions on the subject, and, finally, some additional issues to study are suggested.

Assessing the risk profile of dairy farms: application of the Income Stabilisation Tool in Italy

Purpose This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this paper is to propose methodology for the quantification of reference income when farm structural change occurs and estimate the role of farm attributes on the probability of income loss, offering an ex ante evaluation of farm resilience to risk. Design/methodology/approach Based on a balanced Farm Accountancy Network farm-level panel ranging from 2008 to 2014, three hypotheses of reference income calculation are tested to assess whether farms structural changes over the years significantly affect the level of IST indemnification. The role of farm characteristics on the probability of an income reduction is then evaluated by estimating a multinomial logit model. Findings Results show that farms’ structural changes significantly affect IST indemnities and need to be considered in calculating the reference income. The estimated model suggests that farm characteristics significantly affect the probability of a severe income drop and hence risk resilience. Extensive livestock systems seem to reduce the probability of an income drop, while farms in upland areas managed by young farmers seem to experience increased risk exposure. Originality/value The research provides one of the first attempts to define risk profile of dairy farms by modelling the probability of an income reduction on observable attributes. Indeed, among different sectors, dairy farms emerge as the main candidates for the application of the IST.

More crop for drop - climate change and wine: an economic evaluation of a new drought-resistant rootstock.

The current paper presents the results of an economic evaluation of a new drought-resistant rootstock (M4), capable to maintain in adverse environmental conditions high photosynthetic activity, to accumulate osmotic compounds and to compensate for the accumulation of sodium and chlorine in the grapevines, in two core Italian grapevine growing areas: the North-East and Sicily. After collecting data on quantitative (yield per plant in kg) and qualitative parameters (°Brix, anthocyanins, pH) of experimental vineyards (Cabernet Sauvignon variety) planted using the traditional rootstock 1103P and the innovative M4 rootstock, over a seven-year period, a cost-benefit analysis calculated the effects of replacing the traditional rootstock. The results show that M4 rootstock yields higher net revenues compared to the best situation of 1103P rootstock, roughly in 40% of North-East vineyards and in more than 80% of their Sicilian counterparts. In addition, 14% of North-East vineyards and more than 94% of Sicilian vineyards are currently exposed to drought risk, and these areas are expected to increase in the coming years. Thus the M4 rootstock, as other related innovations [51-53], could significantly improve watersaving strategies, which are gaining increasing attention from both public bodies and wine companies.

The Liberalisation of Planting Rights in the Eu Wine Sector

The study analyses the theme of production potential regulation and of the planned abolishment of the planting rights regime considering the constraints defined by the CAP evolution, the current situation of the market, the role in the market of different regions and the structural complexity of the European wine industry. The study, starting from the analysis of the implementation of the planting rights regime across the EU and through an investigation of what could be the effects of the abolishment of the planting rights regime, defines which should be the policies to: a) counterbalance the effects of the liberalization of plantation; b) improve the functioning of the planting rights regime by implementing a new mechanism of functioning.

Can personal values contribute to explain wine choices

Personal values play an important role in explaining and justifying consumer behaviours through their mediated relationship with attitudes. Nevertheless, to our knowledge, personal values have not been deeply investigated for wine buying behaviour. Current paper, through non-hypothetical experimental auctions, analyses the effect on willingness to pay (WTP) for three different wines of the ten value constructs as measured in the Portrait Value Questionnaire by Schwartz (1994). Outcomes reveal that seven (to eight) values exert a statistically significant effect on consumers’ (N= 210) final WTPs for the three considered wines.

Wineries Evaluation of Costs and Benefits of Sustainability Certification Program: The Case of Terra Vitis in France

BACKGROUND The current paper analyses the evaluation of the costs and benefits of French wineries (N=69) participating in the sustainability program Terra Vitis, a widespread environmental certification scheme within the French wine industry. METHOD An online questionnaire was sent to all Terra Vitis participants, in order to analyse the evaluation of economic costs and benefits (together with environmental benefits) as perceived by wineries. RESULTS Our findings reveal that older participants in the scheme (over 5 years), firms with higher export share (>40% of annual turnover) and cooperative wineries tend to be keener to assign a positive evaluation to the benefits/costs ratio in both the vineyard and the winery. CONCLUSION In the context of increasing concerns regarding the economic and environmental performance of the French agricultural sector, such findings and also the patent research could be useful for policy makers and entrepreneurs in defining mainstream normative and corporate strategies.

Valutazione della competitività del settore vitivinicolo italiano: un contributo all’analisi

The Italian wine industry is in a critical position. After a great development during the last decade of the XX century, based on the expansion of his position in the international trade and on the stabilisation of the domestic market, now the industry is facing a reduced export activity – respect to the beginning of the century – and increasing import. All firms have, therefore, to reorganise long term strategies and current operation in order to sustain the new challenges of the market. In order to offer a better understanding of the current scenario, this paper analyses the Italian position in the world wine market, considering the different wine typologies and importing countries, and evaluates if some crucial elements in competitiveness (factor cost, industry structure and profitability) can be considered as evident weaknesses. This paper outlines that the recent performance of the Italian wine industry in the international trade has been really different considering different wine typologies and countries. In addition, the paper shows that the decreased competitiveness of the industry as a whole, is not directly caused by the factor cost; the small size of the exporting firms appears as an evident weakness, but a not sufficient quality of the competitive processes operated by a relevant firm share in the industry is also a crucial issue.