Comparative Economic Regulation of Viticultural Appellations: U.S. Practices and Italian Wine Law

David E.R. Gay

doi:10.1108/eb008759

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International Journal of Wine Marketing

ISSN: 0954-7541
Currently published as: International Journal of Wine Business Research

Online from: 1989

Subject Area: Marketing

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Comparative Economic Regulation of Viticultural Appellations: U.S. Practices and Italian Wine Law

Document Information:
Title:	Comparative Economic Regulation of Viticultural Appellations: U.S. Practices and Italian Wine Law
Author(s):	David E.R. Gay, (Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR 72701, USA, and an ICER Senior Research Fellow at the International Centre for Economic Research, Turin, Italy)
Citation:	David E.R. Gay, (2003) "Comparative Economic Regulation of Viticultural Appellations: U.S. Practices and Italian Wine Law", International Journal of Wine Marketing, Vol. 15 Iss: 3, pp.5 - 14
Keywords:	Alchohol and Tobacco Tax and Trade Bureau, appellations, ATF, BATF, economics, geographic, Italian wine law, TTB, US practices, winery regulation
Article type:	General review
DOI:	10.1108/eb008759 (Permanent URL)
Publisher:	MCB UP Ltd
Abstract:	Government regulation affects “the economics of what's-in-a-name” in the U.S.A. and Italy, as well as in other nations. The paper briefly explores some of the economic implications of creating viticultural appellations or geographic districts. Among the issues examined are the exclusivity principle, the problem of the commons, the value of governmental approval, and consumer issues. Also, several U.S. anomalies are introduced and discussed. This paper compares the establishment of U.S. viticultural areas with the Italian approach, which was initially private and later developed within the framework of the Italian wine laws. The Italian approach more closely resembles a private arrangement supported by law instead of a cartel.

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