Asymmetric Information and Organizational Forms in Wine Markets

AAEA invites media to attend their sessions at the ASSA 2026 Annual Meeting in Philadelphia, PA.

On Sunday, January 4, 2026 at 12:30 pm – 2:15 pm (EST) at the Marriott Philadelphia Downtown, three AAEA members will speak at the session "Asymmetric Information and Organizational Forms in Wine Markets "

Presentations in this session include (speakers are listed first):

Quality Certification under Uncertainty: An Analysis of Wine Competition RatingsGianni De Nicolò, Johns Hopkins University

Wine competitions serve as certifiers of quality by awarding medals that influence consumer choice and producer strategies. Yet current rating protocols generate uncertainty from two sources: \textit{rating risk}, due to variation in jury assignments and score aggregation within competitions, and \textit{competition risk}, arising from inconsistent standards across events. We propose a standardized rating system that addresses rating risk by normalizing judges' scores and grouping wines into statistically significant quality classes. Using data from a wine competition, we show that this method reduces score variance and stabilizes award allocations. Extending the analysis, we use a model of intermediary certifiers to capture competition risk and show that heterogeneity in rating protocols diminishes the informational value of medals, raising consumer search costs and lowering producer profits. Standardization across competitions strengthens the credibility of ratings, improves welfare, and enables more efficient submission strategies for producers.

Wine Cooperatives and Returns on AssetsAngelo Zago, University of Verona

This paper examines the financial performance of wine cooperatives. It introduces a theoretical model that conceptualizes cooperatives as vertically integrated firms, encompassing both the grape production stage managed by members and the wine-making stage operated by the cooperative itself. This model decomposes the total profitability of the wine value chain into these two distinct stages. The empirical analysis uses data from wine cooperatives in Italy and Spain to test the model's predictions. Additionally, survey data are employed to analyze the distribution of profitability across the two stages. The model suggests that cooperatives managed by professional administrators prioritize profitability in the wine-making segment, while those controlled by members focus on maximizing returns on assets for individual growers.

About Rioja Splitting: Politics or Economics?Omer Gokcekus, Seton Hall University

This paper investigates whether Rioja Alavesa's pursuit of a separate Denominación de Origen Calificada (DOC) is driven by economic incentives or political motivations. Using content analysis and regression modeling based on Wine Spectator and Tim Atkin ratings data, the study finds that Rioja Alavesa wines command a significant price premium (16.1%), supporting the economic argument for market differentiation. However, quality ratings do not significantly differ from other Rioja wines, suggesting that branding and perception, rather than intrinsic quality, drive the premium. Additionally, Rioja Alavesa wineries tend to be smaller and less reliant on aging-based classifications, reinforcing concerns about structural disadvantages within the existing system. These findings highlight the economic rationale for a separate DOC while acknowledging the political complexities involved. The paper concludes with policy implications that may apply to other geographical indications experiencing similar tensions.

ABOUT AAEA: Established in 1910, the Agricultural & Applied Economics Association (AAEA) is the leading professional association for agricultural and applied economists, with 2,500 members in more than 60 countries. Members of the AAEA work in academic or government institutions as well as in industry and not-for-profit organizations, and engage in a variety of research, teaching, and outreach activities in the areas of agriculture, the environment, food, health, and international development. The AAEA publishes three journals, the Journal of the Agricultural and Applied Economics Association (an open access journal), the American Journal of Agricultural Economics and Applied Economic Perspectives & Policy, as well as the online magazine Choices and the online open access publication series Applied Economics Teaching Resources. To learn more, visit http://www.aaea.org.

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#PennsylvaniaPeachy @commongoodlabs Center for American Entrepreneurship Releases New Report on State of Small Business in Pennsylvania

One out of every 100 workers in the United States is employed by a small business in Pennsylvania and these businesses generate more than $56 billion in worker wages annually. These and other findings in The State of Small Businesses in Pennsylvania, a new report issued by the Center for American Entrepreneurship (CAE), highlight the national importance of Pennsylvania small businesses and what may be necessary to support their role in future economic development in the commonwealth.

One out of every 100 workers in the United States is employed by a small business in Pennsylvania and these businesses generate more than $56 billion in worker wages annually. These and other findings in The State of Small Businesses in Pennsylvania, a new report issued by the Center for American Entrepreneurship (CAE), highlight the national importance of Pennsylvania small businesses and what may be necessary to support their role in future economic development in the commonwealth.

"Repeated research has identified entrepreneurship as a critical driver of national economic success," said John R. Dearie, president of CAE. "This in-depth study conducted by Common Good Labs focuses on Pennsylvania to show how one state's small businesses can play an outsized role in the national landscape, and policy's critical role in supporting these economic engines."

Because of its enormous size and because it is home to many of the world's most prominent corporations, the U.S. economy is frequently regarded as a large business economy. In fact, what distinguishes the U.S. economy from other industrialized economies around the world is its foundation of small businesses. According to the Small Business Administration, more than 33 million small businesses operate in the United States, 98 percent of which have fewer than 100 employees and 89 percent of which have fewer than 20 workers. These small businesses employ more than 60 million people, or about half of the American workforce.

The state of small business in America, therefore, is a vital indicator of the strength and vitality of the U.S. economy overall. Similarly, identifying challenges to small businesses – as well as opportunities to support the formation, health, and growth of small businesses – is essential to determining the broad themes and objectives of U.S. economic policy.

With these realities in mind, CAE partnered with Common Good Labs to assess the state of small business in Pennsylvania, home to more than 176,000 independent companies employing between 1 and 49 workers. The report examines the importance and impact of small businesses across the counties of Pennsylvania, quantifies their contribution to local communities, compares Pennsylvania's small business sector to other states, and identifies steps state and local policymakers should consider to support small businesses.

The report includes a number of important takeaways, including:With 176,000 small businesses employing 1 to 49 employees, Pennsylvania ranks 33rd among all 50 states and the District of Columbia regarding small business concentration, with 13.5 small businesses per every 1,000 residents, compared to a national average of 14.6.

Pennsylvania's small businesses employ 1.4 million workers – one out of every 100 U.S. workers –reflecting their national importance to jobs and economic value.

New small businesses are less common in Pennsylvania, but those launched in the state have a 69 percent survival rate — five points higher than the national average — and additional initiatives outlined in Pennsylvania's state economic development plan could increase both the concentration of small businesses and their longevity.

The most common small businesses in Pennsylvania are accommodation and food services firms. Other common sectors include construction, retail stores, health care, and social services, and business services.

Small businesses make unique contributions to Pennsylvania's rural counties and are also a critical part of Pennsylvania's urban neighborhoods.

Opportunities to strengthen small businesses in Pennsylvania include policies intended to encourage and provide resources to grow ownership and remove barriers to success regardless of where an entrepreneur starts.

"CAE thanks Common Good Labs for their splendid work to produce the report and its findings, which echo CAE's own research regarding startups and entrepreneurship nationwide," Mr. Dearie said. "The report offers important guidance regarding small business policy at a time when support for these businesses is overwhelmingly bipartisan. We also want to thank the advisory committee of small business support leaders from small business associations, entrepreneur service organizations, and foundations representing regions across the Commonwealth. The committee members gave invaluable input and guidance to the study."

The full report can be found on the CAE website, startupsUSA.org. Questions regarding the implications of the report for national small business or economic policy can be directed to John Dearie, president of the Center for American Entrepreneurship: john@startupsUSA.org

Questions regarding the report's data, methodology, and analysis can be directed to Rhett Morris (rhett@commongoodlabs.com) or Rohit Acharya (rohit@commongoodlabs.com), partners at Common Good Labs.

About the Center for American Entrepreneurship (CAE):

The Center for American Entrepreneurship (CAE) is a nonpartisan research, policy, and advocacy organization whose mission is to engage and educate policymakers in Washington, and at state and local levels across the nation, regarding the critical importance of entrepreneurs and startups to innovation, economic growth, and job creation – and to pursue a comprehensive policy agenda intended to achieve a stronger, more resilient, and inclusive U.S. economy through thriving entrepreneurship.

For more information, visit startupsUSA.org.

Follow CAE on Twitter (X) and LinkedIn.

About Common Good Labs:

Common Good Labs is a data science and research organization that helps mission-driven organizations find new solutions that improve lives and communities. CGL works with foundations, governments, nonprofits, and for-profit businesses.

For more information, visit: commongoodlabs.com

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#NHLPeachy @NHL #StadiumSeries #PennsylvaniaPeachy #SportyPeachy #WhomYouKnow Tickets to the 2019 Coors Light NHL Stadium Series at Lincoln Financial Field Go On Sale to the Public Oct. 16

Tickets to the 2019 Coors Light NHL Stadium Series™ at Lincoln Financial Field between the Philadelphia Flyers and the Pittsburgh Penguins will go on sale to the public Tuesday, Oct. 16.

Tickets to the 2019 Coors Light NHL Stadium Series™ go on sale Tuesday, Oct. 16, at 10 a.m. via Ticketmaster, the official ticketing partner of the NHL®, via its website and the Ticketmaster app. Fans can purchase tickets safely and securely onTicketmaster.com and the NHL Ticket Exchange™, with the peace of mind in knowing that the specific seats they buy are the seats they’ll get. Through the NHL Ticket Exchange, tickets transferred or resold to new fans are 100% Ticketmaster verified. This provides a level of security that no other marketplace can match. Tickets will be available on a first-come, first-served basis starting at $75 plus applicable fees, while supplies last.

In November, the NHL announced that the Flyers will host the Penguins in a regular-season outdoor game that will be played at Lincoln Financial Field, home of the NFL’s Philadelphia Eagles, on Saturday, February 23, 2019. The game will be broadcast in primetime on NBC in the United States and on Sportsnet and TVA Sports in Canada at 8 p.m. ET. 

The Philadelphia Flyers and the Pittsburgh Penguins have faced each other in a total of 285 NHL regular-season games, with the Flyersholding a 105-point edge (PHI 153-92-40—346; PIT 102-146-37—241). The clubs will face off for the first time this season on Dec. 1 in Pittsburgh, their first of two meetings before the 2019 Coors Light NHL Stadium Series™. The Flyers and Penguins have met seven times in the post-season, with Philadelphia holding the lead in series victories, 4-3.

In February, the Flyers will be making their fourth appearance in a regular-season outdoor game. The Flyers will be searching for their first win in an outdoor contest, losing 2-1 in overtime to the Boston Bruins at the 2010 Bridgestone NHL Winter Classic® at Fenway Park in Boston; 3-2 against the New York Rangers at the 2012 Bridgestone NHL Winter Classic® at Citizens Bank Park in Philadelphia and most recently a 4-2 defeat at the hands of the Penguins in the 2017 Coors Light NHL Stadium Series™ at Heinz Field in Pittsburgh. 

The game at Lincoln Financial Field will be the fifth outdoor matchup for the Penguins, who head into this year’s game with a record of 2-2. The Penguins defeated Buffalo 2-1 in a shootout at the 2008 AMP Energy NHL Winter Classic® at Ralph Wilson Stadium in Buffalo; lost 3-1 to the Washington Capitals in the 2011 Bridgestone NHL Winter Classic®, in Pittsburgh at Heinz Field; dropped a 5-1 decision to the Chicago Blackhawks at Soldier Field in Chicago for the 2014 Coors Light NHL Stadium Series™ and defeated the Flyers 4-2 in the 2017 Coors Light NHL Stadium Series™ at Heinz Field in Pittsburgh.

The Flyers and the Penguins showcase some of the League’s top talent. The Flyers feature captain Claude Giroux and forwards Sean Couturier and Jakub Voracek as well as defenseman Shayne Gostisbehere. Pittsburgh features Hart Memorial Trophy winners, Sidney Crosby and Evgeni Malkin, as well as forward Phil Kessel and defenseman Kris Letang.

Additional details on the 2019 Coors Light NHL Stadium Series™ will be announced on NHL.com/StadiumSeries. NHL Network™ and NHL.com will provide extensive coverage live from the event leading up to and after the game. NHL Social™ will have exclusive coverage on all social platforms, including the use of the official hashtag NHL #StadiumSeries. 

NHL, the NHL Shield and the word mark NHL Winter Classic are registered trademarks and NHL Stadium Series name and logo, NHL Ticket Exchange, NHL Network and NHL Social are trademarks of the National Hockey League. NHL and NHL team marks are the property of the NHL and its teams. © NHL 2018. All Rights Reserved.

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