Price formation: The Burgundy wine market

The price formation process calls economic theories to account as soon as the notion of << quality >> is introduced. This article uses the principle of << embeddedness >> postulated by economic sociology to show how analysis of price formation can point to and reveal the social organization of markets for quality goods. A comprehensive approach to how Burgundy wine producers set their prices makes it possible to explain how their various decision-making procedures are related to statuses and professional relations. Using << integration variables >> that are both economic and sociological, the discussion opens prospects for renewed dialogue between the two disciplines and thus represents a move forward in understanding the << economics of quality >>.