Abstract
Considering the Italian wine market, we investigate the relationship between product quality, on the one hand, and profits and profitability, on the other hand. Using data from 1052 wineries over the period 2006–2015, we find robust evidence of a positive relationship between product quality, measured by the wineries’ reputation for quality, and profits, measured by the Earnings Before Interest, Depreciation and Amortization. By contrast, we observe no relationship between reputation and profitability, measured by the Return on Invested Capital.
Funding source: Libera Università di Bolzano
Award Identifier / Grant number: WW202C
Acknowledgments
We thank the editor, Till Requate, two anonymous reviewers, Orley Ashenfelter, Marco Costanigro, Alessandro Gavazza, Philipp Kircher, Raffaele Miniaci, Steven Stillman, Karl Storchmann, Mirco Tonin, David Yanagizawa-Drott, and the participants at the AAEA Annual Meeting (Washington) and the Wine and Hospitality Management Workshop (Lausanne) for helpful discussions and suggestions. Alessandro Fedele gratefully acknowledges financial support from the Free University of Bolzano (research grant WW202C). The data that support the findings of this study are available upon request.
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Articles in the same Issue
- Frontmatter
- Research Articles
- Gender Differences and Firm Performance: Evidence from India
- The Effect of Soft Skills on Academic Outcomes
- Search and Matching in Political Corruption
- The New Form Agency Problem: Cooperation and Circular Agency
- Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus
- Active Labour Market Policies: What Works for the Long-Term Unemployed?
- Does Abolishing a Copayment Increase Doctor Visits? A Comparative Case Study
- An Experimental Analysis of Patient Dumping Under Different Payment Systems
- Does Excellence Pay Off? Evidence from the Italian Wine Market
- Letters
- Estimating the Socio-Economic Status of the U.S. Capitol Insurrectionists
- The Effect of Elevating the Supplemental Poverty Measure on Government Program Eligibility and Spending
- Data-Driven Health Innovation and Privacy Regulation