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English Issue > 2006

An Annual English Selection - 2006 - 47 - Supplement

Price Formation : The Case of the Burgundy Wine Market

Yuna CHIFFOLEAUCatherine LAPORTE

 

 

pp. 157-182

 

Price formation processes in “quality” commodities markets challenges standard economic theory. Using the principle of “embeddedness” postulated by economic sociology, the article shows how price formation analysis can reveal the social organization of such markets. A comprehensive approach to how wine producers in Burgundy determine their prices shows how the diversity of procedures used is related to professional relations and statuses. Using “integration variables” that are both economic and sociological, the discussion opens onto perspectives for renewing dialogue between the two disciplines and thus furthering our understanding of “the economics of quality”.

 

 

 
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