IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v19y2003i3p315-324.html
   My bibliography  Save this article

Free-rider effects of generic advertising: The case of salmon

Author

Listed:
  • Henry W. Kinnucan

    (Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, Alabama 36849-5406. E-mail: hkinnuca@acesag.auburn.edu)

  • Øystein Myrland

    (Department of Economics and Management, University of Tromsø, Tromsø, Norway)

Abstract

The free-rider effects of commodity promotion are a neglected issue in the empirical literature. This study addresses the lacuna by considering the salmon promotion program conducted by the Norwegian Seafood Export Council. Specifically, a model of the world salmon market is used to indicate returns to Norwegian producers from NSEC's marketing activities, but also returns to Norway's international competitors. Results suggest program intensification would have a positive effect on total (worldwide) producer surplus in the short run, but the gain's distribution is uneven. Specifically, Norway would receive 23% of the gain compared to 48% for United Kingdom producers. By way of comparison, Norway and UK world trade shares are 47 and 16%, respectively. The disproportionate gains to UK producers are due to a double free ride: from the export tax used to fund the advertising increase, and from the advertising itself. [EconLit citations: L660, Q130, Q170]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 315-324, 2003.

Suggested Citation

  • Henry W. Kinnucan & Øystein Myrland, 2003. "Free-rider effects of generic advertising: The case of salmon," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 315-324.
    • Handle: RePEc:wly:agribz:v:19:y:2003:i:3:p:315-324
    DOI: 10.1002/agr.10061
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.10061
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.10061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway‐EU Salmon Agreement: a Mid‐term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219, July.
    2. Nelson, Robert G., 1995. "Application of Experimental Economics to Problems in Commodity Promotion," New Methodologies for Commodity Promotion Economics, October 5-6, 1995, Sacramento, California 279628, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    3. Frank Asche, 2001. "Testing the effect of an anti-dumping duty: The US salmon market," Empirical Economics, Springer, vol. 26(2), pages 343-355.
    4. Chanjin Chung & Harry M. Kaiser, 1999. "Distribution of Gains from Research and Promotion in Multistage Production Systems: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 593-597.
    5. Goddard, Ellen W. & Conboy, Paula, 1993. "Optimal International Promotion Expenditure for Differentiated Products," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), pages 1-13, April.
    6. Hill, D. J. & Piggott, R. R. & Griffith, G. R., 2001. "Profitability of incremental generic promotion of Australian dairy products," Agricultural Economics, Blackwell, vol. 26(3), pages 253-266, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Capps, Oral, Jr. & Williams, Gary W. & Dang, Trang, 2010. "Effects of Lamb Promotion on Lamb Demand and Imports," Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    2. Williams, Gary W. & Capps Jr., Oral, 2020. "Generic promotion of Norwegian seafood exports," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    3. Williams, Gary W. & Capps, Jr., Oral, 2022. "The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3), February.
    4. H. Dharma Kwon, 2019. "Game of Variable Contributions to the Common Good under Uncertainty," Papers 1904.00500, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    2. Frank Asche & Shabbar Jaffry & Jessica Hartmann, 2007. "Price transmission and market integration: vertical and horizontal price linkages for salmon," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2535-2545.
    3. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway‐EU Salmon Agreement: a Mid‐term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219, July.
    4. Kinnucan, Henry W. & Xiao, Hui & Yu, Shixue, 2000. "Relative Effectiveness Of Usda'S Nonprice Export Promotion Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-19, December.
    5. Richards, Timothy J. & Patterson, Paul M., 2000. "New Varieties And The Returns To Commodity Promotion: The Case Of Fuji Apples," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-14, April.
    6. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2003. "Distributional issues in check-off funded programs," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 277-287.
    7. Dent, Siobahn K. & Piggott, Roley R. & O'Donnell, Christopher J. & Griffith, Garry R., 2003. "Does Excluding Cross-commodity Interactions Matter? Beef and Lamb in Australia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57859, Australian Agricultural and Resource Economics Society.
    8. Mounter, Stuart W. & Griffith, Garry R. & Mullen, John D., 2008. "Jointly selecting for fibre diameter and fleece weight: A market-level assessment of the QPLU$ Merino breeding project," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6046, Australian Agricultural and Resource Economics Society.
    9. Max Nielsen & Jos Smit & Jordi Guillen, 2009. "Market Integration of Fish in Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 367-385, June.
    10. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    11. J. A. L. Cranfield, 2003. "Optimal Collective Investment in Generic Advertising, Export Market Promotion and Cost-of-Production-Reducing Research," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 51(3), pages 299-321, November.
    12. Anderson, James L. & Asche, Frank & Garlock, Taryn, 2018. "Globalization and commoditization: The transformation of the seafood market," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 2-8.
    13. Asche, Frank & Roll, Kristin H & Trollvik, Trine, 2009. "New aquaculture species. Entering the whitefish market," UiS Working Papers in Economics and Finance 2009/21, University of Stavanger.
    14. Xayavong, Vilaphonh & Radhakrishnan, Manju & Kingwell, Ross S., 2013. "Development Strategies for a Premium Wine Region of Australia: an application of value chain modelling," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152186, Australian Agricultural and Resource Economics Society.
    15. Kinnucan, Henry W., 1999. "Advertising Traded Goods," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-19, July.
    16. Jones, Keithly G. & Harvey, David J. & Hahn, William F. & Muhammad, Andrew, 2008. "U.S. Demand for Source–Differentiated Shrimp: A Differential Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-13, August.
    17. Williams, Gary W. & Capps, Jr., Oral, 2022. "The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3), February.
    18. Vere, David T. & Griffith, Garry R. & Silvester, Luke T., 2005. "Australian Sheep Industry CRC: Economic Evaluations of Scientific Research Programs," Research Reports 42651, New South Wales Department of Primary Industries Research Economists.
    19. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).
    20. Griffith, Garry & Jacob, Robin & Mounter, Stuart & Zhang, Yue, 2021. "The Benefits of Dry Ageing of Mutton to the Australian Sheep Meat Industry," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 29(3), May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:19:y:2003:i:3:p:315-324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.