We investigate the economic importance of implicit quality incentives in an agricultural market that lacks the … institutional capacity for measuring quality verifiably. We measure the magnitude of implicit price premiums for quality, and we … premiums comparable in magnitude to premiums observed in other agricultural markets where quality is measured verifiably …

of grape quality, and we test for the presence of complementary implicit incentives that arise from competition in the …-term contracts for high-quality provision. In general, farmers that have invested in high-quality production, and those that are more …