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Common Labels and Market Mechanisms Author info | Abstract | Publisher info | Download info | Related research | Statistics Christine Boizot-Szantai
Sebastien Lecocq
Stephan Marette
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In this article, the impact of common labels is investigated with both theoretical and empirical approaches. Recent statistics regarding the egg market in France suggest that retailer brands largely adopt common labels. A simple theoretical framework enables us to determine the conditions under which producers and/or retailers with different product qualities decide to post a common label on their products. In particular, a situation of multiple equilibria (one where the label is used by the high-quality seller only and one where it is used by the low-quality seller only) is exhibited when the cost of the label is relatively large. The demand is then estimated for different segments of the French egg market, including producer/retailer brands with/without common labels. The estimates are used to derive expenditure and price elasticities and allow us to calculate welfare measures revealing a relatively large willingness-to-pay for labels.
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Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number
05-wp405.
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Date of creation: Sep 2005Date of revision:
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Keywords: competition ; demand estimation ; labels ; product differentiation. ; Other versions of this item:
Paper Christine Boizot-Szantai & Sebastien Lecocq & Stephan Marette, 2005.
"Common Labels and Market Mechanisms ,"
Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications
05-wp405, Midwest Agribusiness Trade Research and Information Center (MATRIC) at Iowa State University.
[Downloadable!] Christine Boizot-Szantai & Sebastien Lecocq & Stephan Marette, 2005.
"Common Labels and Market Mechanisms ,"
Center for Agricultural and Rural Development (CARD) Publications
05-wp405, Center for Agricultural and Rural Development (CARD) at Iowa State University.
[Downloadable!] Boizot-Szantai, Christine & Lecocq, Sébastien & Marette, Stéphan, 2005.
"Common Labels and Market Mechanisms ,"
Staff General Research Papers
12422, Iowa State University, Department of Economics.
[Downloadable!] References listed on IDEAS 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.: Crespi, John M & Marette, Stephan, 2001.
" How Should Food Safety Certification Be Financed? ,"
American Journal of Agricultural Economics ,
American Agricultural Economics Association, vol. 83(4), pages 852-61, November.
[Downloadable!] (restricted)
Crespi, John M. & Marette, Stephan, 2003.
"Some Economic Implications Of Public Labeling ,"
Journal of Food Distribution Research ,
Food Distribution Research Society, vol. 34(03), November.
[Downloadable!]
Hayes, Dermot J. & Lence, Sergio H. & Babcock, Bruce A., 2005.
"Geographic Indications and Farmer-Owned Brands: Why Do the U.S. and E.U. Disagree? ,"
Staff General Research Papers
12418, Iowa State University, Department of Economics.
Nimon, Wesley & Beghin, John, 1999.
"Are Eco-Labels Valuable? Evidence from the Apparel Industry ,"
Staff General Research Papers
1514, Iowa State University, Department of Economics.
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Other versions:
Nimon, Wesley & Beghin, John, 1999.
"Are Eco-Labels Valuable? Evidence from the Apparel Industry ,"
Staff General Research Papers
4048, Iowa State University, Department of Economics.
[Downloadable!] Nimon, W. & Beghin, John C., 2007.
"Are Eco-Labels Valuable? Evidence from the Apparel Industry ,"
Staff General Research Papers
12741, Iowa State University, Department of Economics.
[Downloadable!] Nimon, Wesley & Beghin, John C., 1998.
"Are Eco-Labels Valuable? Evidence From The Apparel Industry ,"
1998 Annual meeting, August 2-5, Salt Lake City, UT
21016, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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"Are Eco-Labels Valuable? Evidence from the Apparel Industry ,"
Food and Agricultural Policy Research Institute (FAPRI) Publications
99-wp213, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
[Downloadable!] Wesley Nimon & John C. Beghin, 1998.
"Are Eco-Labels Valuable? Evidence from the Apparel Industry ,"
Center for Agricultural and Rural Development (CARD) Publications
99-wp213, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Journal of Economic Theory ,
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James Banks & Richard Blundell & Arthur Lewbel, 1997.
"Quadratic Engel Curves And Consumer Demand ,"
The Review of Economics and Statistics ,
MIT Press, vol. 79(4), pages 527-539, November.
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Ulrich Enneking, 2004.
"Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label ,"
European Review of Agricultural Economics ,
Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 205-223, June.
Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001.
"Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk ,"
2001 Annual meeting, August 5-8, Chicago, IL
20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
[Downloadable!]
Hayes, Dermot J. & Lence, Sergio H. & Stoppa, Andrea, 2004.
"Farmer-Owned Brands? ,"
Staff General Research Papers
11285, Iowa State University, Department of Economics.
Other versions: Blundell, Richard & Robin, Jean Marc, 1999.
"Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems ,"
Journal of Applied Econometrics ,
John Wiley & Sons, Ltd., vol. 14(3), pages 209-32, May-June.
[Downloadable!]
Other versions: Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ron C., 2001.
"Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples ,"
Journal of Agricultural and Resource Economics ,
Western Agricultural Economics Association, vol. 26(02), December.
[Downloadable!]
McCluskey, Jill J. & Loureiro, Maria L., 2003.
"Consumer Preferences And Willingness To Pay For Food Labeling: A Discussion Of Empirical Studies ,"
Journal of Food Distribution Research ,
Food Distribution Research Society, vol. 34(03), November.
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Banks, James & Blundell, Richard & Lewbel, Arthur, 1996.
"Tax Reform and Welfare Measurement: Do We Need Demand System Estimation? ,"
Economic Journal ,
Royal Economic Society, vol. 106(438), pages 1227-41, September.
[Downloadable!] (restricted)
Other versions: Jérôme Adda, 2007.
"Behavior towards health risks: An empirical study using the “Mad Cow” crisis as an experiment ,"
Journal of Risk and Uncertainty ,
Springer, vol. 35(3), pages 285-305, December.
[Downloadable!] (restricted)
Hayes, Dermot J. & Lence, Sergio H., 2004.
"New Brand of Agriculture? Farmer-Owned Brands Reward Innovation (A) ,"
Staff General Research Papers
11289, Iowa State University, Department of Economics.
Other versions: Marette, Stephan & Crespi, John M & Schiavina, Allesandra, 1999.
"The Role of Common Labelling in a Context of Asymmetric Information ,"
European Review of Agricultural Economics ,
Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 167-78, June.
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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.)
Marette, Stéphan, 2005.
"Collective-Quality Promotion in the Agribusiness Sector: An Overview, The ,"
Staff General Research Papers
12431, Iowa State University, Department of Economics.
[Downloadable!]
Stephan Marette, 2005.
"The Collective-Quality Promotion in the Agribusiness Sector: An Overview ,"
Center for Agricultural and Rural Development (CARD) Publications
05-wp406, Center for Agricultural and Rural Development (CARD) at Iowa State University.
[Downloadable!]
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