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Geographical Indications and the Competitive Provision of Quality in Agricultural Markets

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Author Info
GianCarlo Moschini
Luisa Menapace
Daniel Pick

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Abstract

The economics of geographical indications (GIs) is assessed within a vertical product differentiation framework that is consistent with the competitive structure of agriculture. It is assumed that certification costs are needed for GIs to serve as (collective) credible quality certification devices, and production of high-quality product is endogenously determined. We find that GIs can support a competitive provision of quality and lead to clear welfare gains, although they fall short of delivering the (constrained) first best. The main beneficiaries are consumers. Producers may also accrue some benefit if production of the high-quality products draws on scarce factors that they own. Copyright Copyright 2008 American Agricultural Economics Association.

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Article provided by American Agricultural Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 90 (2008)
Issue (Month): 3 (08)
Pages: 794-812
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Handle: RePEc:bla:ajagec:v:90:y:2008:i:3:p:794-812

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law & Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
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  6. Landes, William M & Posner, Richard A, 1987. "Trademark Law: An Economic Perspective," Journal of Law & Economics, University of Chicago Press, vol. 30(2), pages 265-309, October.
  7. Hayes, Dermot J. & Lence, Sergio H. & Stoppa, Andrea, 2004. "Farmer-Owned Brands?," Staff General Research Papers 11285, Iowa State University, Department of Economics.
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  8. Hughes, Joseph P, 1980. "The Comparative Statics of the Competitive, Increasing-Cost Industry," American Economic Review, American Economic Association, vol. 70(3), pages 518-21, June. [Downloadable!] (restricted)
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  12. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-, December.
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  13. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August. [Downloadable!] (restricted)
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  15. Tim Josling, 2006. "The War on "Terroir": Geographical Indications as a Transatlantic Trade Conflict," Journal of Agricultural Economics, Blackwell Publishing, vol. 57(3), pages 337-363. [Downloadable!] (restricted)
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  20. Benitez, D. & Bouamra-Mechemache, Z. & Chaaban, J., 2005. "Public labeling revisited : the role of technological constraints under protected designation of origin regulation," Economics Working Paper Archive (Toulouse) 200521, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse). [Downloadable!]
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  21. GianCarlo Moschini, 2003. "Intellectual Property Rights and the World Trade Organization: Retrospect and Prospects," Center for Agricultural and Rural Development (CARD) Publications 03-wp334, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Menapace, Luisa & Colson, Greg & Grebitus, Carola & Facendola, Maria, 2008. "Consumer preferences for extra virgin olive oil with country-of-origin and geographical indication labels in Canada," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6430, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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