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Generic Commodity Promotion And Product Differentiation

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Author Info

  • Crespi, John M.

Abstract

This paper considers whether generic promotion lowers the differentiation among competing brands as claimed in the 1997 Supreme Court case (Wileman et al. v. Glickman). Commodity promotion is modeled as a multi-stage game where products are vertically differentiated. Analytical results show that if the benefits of generic advertising from increased demand are outweighed by the costs from lower product differentiation then high-quality producers will not benefit from generic promotion but producers of lower-quality goods may.

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File URL: http://purl.umn.edu/21488
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 1999 Annual meeting, August 8-11, Nashville, TN with number 21488.

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Date of creation: 1999
Date of revision:
Handle: RePEc:ags:aaea99:21488

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Related research

Keywords: generic advertising; product differentiation; spatial model; Marketing;

References

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  1. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  2. Crespi, John M., 1999. "Generic Commodity Promotion And Product Differentiation," 1999 Annual meeting, August 8-11, Nashville, TN 21488, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A. & Crespi, John M. & Sexton, Richard J. & Venner, Raymond J., 1998. "The California Prune Board's Promotion Program: An Evaluation," Research Reports 11926, University of California, Davis, Giannini Foundation.
  4. Lee, Hyunok & Alston, Julian M. & Carman, Hoy F. & Sutton, William R., 1996. "Mandated Marketing Programs For California Commodities," Information Series 11919, University of California, Davis, Giannini Foundation.
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Cited by:
  1. Crespi, John M., 1999. "Generic Commodity Promotion And Product Differentiation," 1999 Annual meeting, August 8-11, Nashville, TN 21488, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Crespi, John M. & Marette, Stephan, 2001. "Are Assessments For Generic Advertising Optimal If Products Are Differentiated?," 2001 Annual meeting, August 5-8, Chicago, IL 20762, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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