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Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications

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Author Info
Lence, Sergio H.
Marette, Stephan
Hayes, Dermot J.
Foster, William

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Abstract

We examine the incentives of atomistic producers to differentiate and collectively market products. We analyze market and welfare effects of alternative producer organizations, discuss circumstances under which they will evolve, and describe implications for the ongoing debate between the EU and the United States. As fixed costs of development and marketing increase and the anticipated market size falls, it becomes essential to increase the producer organization's ability to control supply to cover the fixed costs associated with the introduction of differentiated products. Counterintuitively, stronger property right protection for producer organizations may enhance welfare even after a differentiated product has been developed.

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File URL: http://www.blackwell-synergy.com/doi/full/10.1111/j.1467-8276.2007.01036.x
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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12758.

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Date of creation: 20 Mar 2007
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Publication status: Published in American Journal of Agricultural Economics, November 2007, Vol. 89, No. 4, pp. 947-63.
Handle: RePEc:isu:genres:12758

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Related research
Keywords: agricultural products; collective promotion; geographic indications; supply control; quality;

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Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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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.:
  1. Hayes, Dermot J. & Lence, Sergio H. & Stoppa, Andrea, 2004. "Farmer-Owned Brands?," Staff General Research Papers 11285, Iowa State University, Department of Economics.
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  2. Stéphan Marette & John Crespi, 2003. "Can Quality Certification Lead to Stable Cartels?," Review of Industrial Organization, Springer, vol. 23(1), pages 43-64, August. [Downloadable!] (restricted)
  3. Zago, Angelo M. & Pick, Daniel, 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April. [Downloadable!]
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(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.)

  1. Marette, Stephan, 2009. "Can Foreign Producers Benefit from Geographical Indications under the New European Regulation?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1). [Downloadable!]
  2. Vuylsteke, A. & Van Huylenbroeck, G., 2008. "Coordination of collective action in the agro-food sector," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44263, European Association of Agricultural Economists. [Downloadable!]
  3. Anders, Sven & Caswell, Julie A., 2009. "The Benefits and Costs of Proliferation of Geographical Labeling for Developing Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1). [Downloadable!]
    Other versions:
  4. GianCarlo Moschini & Luisa Menapace & Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," Center for Agricultural and Rural Development (CARD) Publications 08-wp458, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  5. 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). [Downloadable!]
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