Comments on: The {Wine Economics} Magnification Effect http://wineeconomist.com/2010/06/30/the-wine-economics-magnification-effect/ Tue, 21 May 2013 21:21:58 +0000 hourly 1 http://wordpress.com/ By: Josh Stein http://wineeconomist.com/2010/06/30/the-wine-economics-magnification-effect/#comment-1150 Thu, 01 Jul 2010 18:26:15 +0000 http://wineeconomist.com/?p=1921#comment-1150 Indeed, an interesting heuristic, but even “international” wines can become commoditized–it’s actually the exclusivity/scarcity function that allows for their simultaneous existence as rare items that are also bought, sold, and traded not for an intrinsic value but as an item upon which a value can be set–by the market.

]]> By: Mike Veseth http://wineeconomist.com/2010/06/30/the-wine-economics-magnification-effect/#comment-1146 Wed, 30 Jun 2010 19:12:14 +0000 http://wineeconomist.com/?p=1921#comment-1146 Thanks for your comment, Aaron. The global/international distinction is useful because it highlights the fact that products in some markets really could come from anywhere (the world is flat idea), but that location still matters for other products (the world is not completely flat). The global market becomes more likely when products are undifferentiated and compete pretty much on price alone.

]]> By: Aaron Ausland http://wineeconomist.com/2010/06/30/the-wine-economics-magnification-effect/#comment-1144 Wed, 30 Jun 2010 18:25:04 +0000 http://wineeconomist.com/?p=1921#comment-1144 Mike,

I hadn’t seen the distinction before between a global market and an international one. Very useful. Is this commonly used? It would seem that if you are competing in a global market, you have already been commoditized, but if you are competing in the international market, you have a market niche that simply extends across borders. Apart from the now almost arbitrary legacy of history (the 1855 business), how can a producer (of any good) who wants to go global ensure that he’s going to end up in the right market?

]]>