Abstract
Processes of valuation and evaluation are especially complex and uncertain in markets for unique products. Consider the purchase of a bottle of fine wine. Each wine was produced in a certain region, on a particular soil, by a famous wine producer, employing methods handed down for centuries. How can consumers compare unique products in order to make a choice? How is a market for singular products possible? According to Lucien Karpik’s economics of singularities, such markets necessarily rely on social actors and artifacts providing knowledge on how to compare unique products, called judgment devices. To systematically assess the explanatory contribution of Karpik’s approach, this paper empirically tests fundamental propositions of the economics of singularities in a quantitative framework, examining the case of the demand for fine wine. The analysis provides ample support for Karpik’s theory. First, wine demand is substantially correlated with the use of judgment devices. Second, the effects of judgment devices on product demand cannot be explained by information deficits, in line with the theoretical arguments. However, the analysis also reveals deviations from the theoretical expectations. Certain judgment devices prove more important for the demand for higher priced wines than predicted, whereas others play a more minor role. Furthermore, the use of judgment devices is substantially linked to social distinction, something Karpik’s theory overlooks.
Highlights
Zusammenfassung Bewertungsprozesse sind besonders komplex in Märkten für einzigartige Produkte
How can consumers compare unique products in order to make a choice? How is a market for singular products possible? According to Lucien Karpik’s economics of singularities, such markets necessarily rely on social actors and artifacts providing knowledge on how to compare unique products, called judgment devices
How can unique wines be compared? How can consumers know what the “best” wine is? How do consumers deal with the uncertainty surrounding the quality of fine wine? How can consumers choose between unique products?
Summary
Sometimes, choosing a product is a straightforward task. Consider, for example, buying gasoline for a car. Karpik’s approach has been called a fundamental contribution to economic sociology (Kraemer 2017), has received quite some attention in theoretical discussions (Hutter 2011; Healy 2011; Aspers 2018; Schenk 2012), and has inspired a host of empirical studies, the vast majority of which employ a qualitative methodology (Rodet 2012; Lefèvre 2015; Eloire 2010; Jourdain 2010; Felouzis and Perroton 2007; for an exception, see Franssen and Velthuis 2016) These studies provide important insights concerning the role of judgment devices in particular markets, systematic empirical analyses operationalizing Karpik’s theory and testing fundamental hypotheses are still lacking. The final section draws conclusions, gives directions for future research, and outlines the mutual benefits of combining the economics of singularities with theories in cultural sociology
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