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Are uniform assessments for generic advertising optimal if products are differentiated?

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Author Info

  • John M. Crespi

    (Department of Agricultural Economics, 342 Waters Hall, Kansas State University, Manhattan, Kansas 66506-4011., E-mail: jcrespi@agecon.ksu.edu)

  • Stéphan Marette

    (UMR d'Economie Publique, INRA-INAPG, Paris-Grignon, France)

Abstract

An analytical framework where consumers display preferences for various qualities of an agricultural commodity is used to investigate the producer welfare effects of generic advertising assessments. Depending upon the degree of differentiation present in the final goods, some producers are shown to benefit more than others from the use of a uniform, per-unit assessment on all producers. This article delineates those cases where producer assessments should be equal and where assessments should be different to insure an equitable benefit. [EconLit citations: Q130, L110]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 367-377, 2003.

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File URL: http://hdl.handle.net/10.1002/agr.10066
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 19 (2003)
Issue (Month): 3 ()
Pages: 367-377

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Handle: RePEc:wly:agribz:v:19:y:2003:i:3:p:367-377

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. James, Jennifer S. & Alston, Julian M., 2002. "Taxes and quality: A market-level analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(3), September.
  2. Mingxia Zhang & Richard J. Sexton, 2002. "Optimal Commodity Promotion when Downstream Markets are Imperfectly Competitive," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 352-365.
  3. Henry W. Kinnucan & Yuliang Miao, 2000. "Distributional Impacts of Generic Advertising on Related Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 672-678.
  4. Alston, Julian M. & Chalfant, James A. & Christian, Jason E. & Meng, Erika C.H. & Piggott, Nicholas E., 1997. "The California Table Grape Commission's Promotion Program: An Evaluation," Monographs, University of California, Davis, Giannini Foundation, number 11932.
  5. Chanjin Chung & Harry M. Kaiser, 2000. "Distribution of Generic Advertising Benefits Across Participating Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 659-664.
  6. Schmalensee, Richard, 1987. "Competitive advantage and collusive optima," International Journal of Industrial Organization, Elsevier, vol. 5(4), pages 351-367.
  7. Nicholas E. Piggott, 2000. "The Incidence of the Costs and Benefits of Generic Advertising," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 665-671.
  8. John M. Crespi, 2003. "The Generic Advertising Controversy: How Did We Get Here and Where Are We Going?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(2), pages 294-315.
  9. John Crespi & Stéphan Marette, 2002. "Generic Advertising and Product Differentiation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 691-701.
  10. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
  11. Julian M. Alston & John W. Freebairn & Jennifer S. James, 2001. "Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 888-902.
  12. Suzuki, Nobuhiro & Kaiser, Harry M., 1997. "Imperfect Competition Models And Commodity Promotion Evaluation: The Case Of U.S. Generic Milk Advertising," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(02), December.
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