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Geographical Indications and the Competitive Provision of Quality in Agricultural Markets Author info | Abstract | Publisher info | Download info | Related research | Statistics GianCarlo Moschini () (Center for Agricultural and Rural Development (CARD) )
Luisa Menapace
Daniel Pick
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The economics of geographical indications (GIs) is assessed within a vertical product differentiation framework that is consistent with the competitive structure of the agricultural sector with free entry/exit. 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 that partly overcomes the market failure and leads to clear welfare gains, although they fall short of delivering the (constrained) first-best level of the high-quality good. The main beneficiaries of the welfare gains are consumers. Producers may also accrue some benefit if the production of high-quality products draws on scarce factors that they own.
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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number
08-wp458.
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Date of creation: Jan 2008Date of revision:
Handle: RePEc:ias:cpaper:08-wp458Contact details of provider: Postal: 578 Heady Hall, Ames, Iowa 50011-1070 Phone: (515) 294-1183 Fax: (515) 294-6336 Email: Web page: http://www.card.iastate.edu/ More information through EDIRC
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Keywords: competitive industry ; free entry/exit ; geographical indications ; Marshallian stability ; quality certification ; trademarks ; welfare. ; Other versions of this item:
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references Cited by : (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.)
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).
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