Brown Bag Seminar: Collective reputation effects: empirical evidence from the wine market

We evaluate the introduction of a collective brand in form of a denomination of origin label in the Austrian wine market using a comprehensive panel data of 37,856 wines produced by 1,519 wineries in the period between 2002 and 2020. We exploit the temporal and regional variation in the implementation of the DAC regulation to estimate the effect of the collective label on prices. We estimate the average treatment effects by applying the standard two-way fixed effects models and the weighted differences-in-difference approaches proposed by de Chaisemartin and D’Haultfoeuille (2022) and de Chaisemartin and D’Haultfoeuille (2024), which account for heterogeneous and dynamic treatment effects. We also employ an instrumental variable (IV) approach to account for  selection into treatment. We find a positive and significant effect of the DAC label on prices, which ranges from 4.6% to 5.3% depending on the model used for estimation.