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Protected Designation of Origin Revisited

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Author Info

  • Bouamra-Mechemache Zohra

    (Toulouse School of Economics)

  • Chaaban Jad

    (American University of Beirut)

Abstract

This paper explores the impacts of Protected Designation of Origin (PDO) certification on the costs and profits of firms as well as consumersÂ’ and total welfare. The paper argues that PDO labels are different from other common labeling schemes, as they involve technological and capacity constraints that influence their economic efficiency. Using a theoretical model of endogenous quality choice, which incorporates vertical differentiation with the costs constraints linked to the PDO label, we explore the way producers can signal their quality either by certifying their product through PDO or by investing in a collective private common label. Results show that even if PDOs are efficient from a producer perspective, a society might be better off with less stringent techniques of quality signaling, relying on private collective certification.

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File URL: http://www.degruyter.com/view/j/jafio.2010.8.1/jafio.2010.8.1.1306/jafio.2010.8.1.1306.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Journal of Agricultural & Food Industrial Organization.

Volume (Year): 8 (2010)
Issue (Month): 1 (August)
Pages: 1-29

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Handle: RePEc:bpj:bjafio:v:8:y:2010:i:1:n:5

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Web page: http://www.degruyter.com

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Cited by:
  1. Bouamra-Mechemache, Zohra & Chaaban, Jad, 2010. "Is the Protected Designation of Origin (PDO) Policy Successful in Sustaining Rural Employment?," 116th Seminar, October 27-30, 2010, Parma, Italy 94987, European Association of Agricultural Economists.
  2. Bouamra-Mechemache, Zohra & Yu, Jianyu, 2011. "Quality Choice, Competition and Vertical Relationship in a Market of Protected Designation of Origin," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114264, European Association of Agricultural Economists.
  3. Di Vita, Giuseppe & D'Amico, Mario, 2013. "Origin Designation And Profitability For Small Wine Grape Growers: Evidence From A Comparative Study," Economics of Agriculture, Institute of Agricultural Economics, vol. 60(1).
  4. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
  5. Tauber, Ramona & Anders, Sven & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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