Skip to main content Accessibility help

Price Effects of Establishing a New Sub-AVA within Oregon's Willamette Valley AVA*

  • Omer Gokcekus (a1) and Clare M. Finnegan (a2)


The creation of new sub-divisions within Oregon's Willamette Valley American Viticultural Area (AVA) may indicate a desire on the part of well-established wineries to “split” or separate their social groupings from those with lesser qualifications. Once their social clusters have been differentiated, we theorize that these wineries would be able to capitalize on their newly developed distinctiveness and collect larger regional reputation premiums. Based on 2,221 Wine Spectator–rated pinot noirs from between 1984 and 2008, regression analyses demonstrate that regional reputation premiums have significantly increased with the creation of sub-AVAs and that the price-quality ratio gap between sub-AVAs and the rest of Willamette has widened. (JEL Classifications: D22, Q12, L14)


Corresponding author

e-mail: (corresponding author).


Hide All

We would like to thank Karl Storchmann for providing the wine price and quality data and Huseyin Cakal, Joe Czerwinski, John Haeger, Neal Hulkower, Edward Tower, and attendees at the Seventh Annual American Association of Wine Economists (AAWE) Conference in Stellenbosch, South Africa, for their helpful comments and suggestions.



Hide All
Ashenfelter, O., and Storchmann, K. (2010). Using hedonic models of solar radiation and weather to assess the economic effect of climate change: The case of Mosel Valley vineyards. Review of Economics and Statistics, 92(2), 333349.
Bicknell, K., and MacDonald, I. (2012). Regional reputation and expert opinion in the domestic market for New Zealand wine. Journal of Wine Research, 23(2), 172184.
BBC News. (2008). France to expand Champagne region. 13 March. Retrieved from
Cross, R.; Plantinga, A. J.; and Stavins, R. N. (2011). The value of terroir: Hedonic estimation of vineyard sale prices. Journal of Wine Economics, 6(1), 114.
Douglas, M. (1986). How institutions think. Syracuse, NY: Syracuse University Press.
Gergaud, O., and Ginsburgh, V. (2010). Natural endowments, production technologies and the quality of wines in Bordeaux. Does terroir matter? Journal of Wine Economics, 5(1), 321.
Gokcekus, O., and Finnegan, C. (2013). Did the Great Recession change the regional reputation premium for wine in the U.S.? Wine Economics and Policy 2(1), 2732.
Gokcekus, O., and Finnegan, C. (2014). Classification and re-classification: Oregon's Willamette Valley AVA and its new sub-AVAs. American Association of Wine Economists, AAWE Working Paper No. 151.
Johnson, R., and Bruwer, J. (2007). Regional brand image and perceived wine quality: The consumer perspective. International Journal of Wine Business Research, 19(4), 276297.
Landon, S., and Smith, C. E. (1997). The use of quality and reputation indicators by consumers: The case of Bordeaux wines. Journal of Consumer Policy, 20(3), 289323.
Lecocq, S., and Visser, M. (2006). What determines wine prices? Objective vs. sensory characteristics. Journal of Wine Economics, 1(1), 4256.
MacNeil, K. (2001). The Wine Bible. New York, NY: Workman Publishing Company.
Zeruvabel, E. (1996). Lumping and splitting: Notes on social classification. Sociological Forum, 11(3), 421433.
Zhao, W. (2005). Understanding classifications: Empirical evidence from the American and French wine industries. Poetics, 33(3/4), 179200.


Related content

Powered by UNSILO

Price Effects of Establishing a New Sub-AVA within Oregon's Willamette Valley AVA*

  • Omer Gokcekus (a1) and Clare M. Finnegan (a2)


Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed.