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Public labeling revisited : the role of technological constraints under protected designation of origin regulation

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Author Info
Benitez, D.
Bouamra-Mechemache, Z.
Chaaban, J.

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Abstract

This paper takes into account technological and output constraints for firms to analyse Protected Designation of Origin (PDO) regulation. We first esamine an original dataset of french Brie cheese producers and compare the cost structure of PDO producteurs with non-PDO ones. The paper also finds that PDO firms face a more costly production technology and do not profit from scale economies. Then, based on a theoretical model, the paper shows a clear tradeoff between the suk advertising costs (net of certification costs) and the degree of diseconomies of scale. This tradeoff affects both the firms' incentive to certify, and the efficiency of public certification. ...French Abstract : Cet article prend en compte les contraintes technologiques et les contraintes des firmes afin d'analyser la régulation des Appellations d'Origine Contrôlée (AOC). Les auteurs examinent en premier lieu une base de données concernant les producteurs de brie français et comparent la structure de production entre les producteurs ayant le label et ceux qui ne l'ont pas. Cet article montre également que des firmes utilisant le label AOC font face à une technologie de production plus coûteuse et qu'ils ne bénéficient pas des économies d'échelles. Dans un deuxième temps, l'article montre, en s'appuyant sur un modèle théorique, un compromis entre coûts fixes de publicité (net des coûts de certification) et le degré de déséconomie d'échelle. Ce compromis affecte à la fois les incitations des firmes à certifier leur produit et l'efficacité de la certification publique.

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File URL: http://www.toulouse.inra.fr/centre/esr/wpRePEc/beneaae2005.pdf
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Publisher Info
Paper provided by French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse) in its series Economics Working Paper Archive (Toulouse) with number 200521.

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Length: 15 p.
Date of creation: 2005
Date of revision:
Handle: RePEc:rea:inrawp:200521

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Related research
Keywords: ECONOMIE D'ECHELLE; LABEL DE QUALITE; APPELLATION D'ORIGINE CONTROLEE; DIFFERENCIATION DES PRODUITS;

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Find related papers by JEL classification:
D2 - Microeconomics - - Production and Organizations
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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.:

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    Other versions:
  2. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Blackwell Publishing, vol. 41(2), pages 113-31, June. [Downloadable!] (restricted)
  3. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Auriol, Emmanuelle & Schilizzi, Steven, 2003. "Quality Signaling through Certification. Theory and an Application to Agricultural Seed Market," IDEI Working Papers 165, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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    Other versions:
  6. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-97, November. [Downloadable!] (restricted)
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    Other versions:
    • Babcock, Bruce A. & Beghin, John & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Olson, Becky, 2002. "Iowa Ag Review," Staff General Research Papers 2052, Iowa State University, Department of Economics.
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    • Babcock, Bruce A. & Beghin, John C. & Clarke, Sandra & Heffernan, Keith & Hempe, Betty & Kaus, Phillip & Olson, Becky, 2001. "Iowa Ag Review," Staff General Research Papers 1940, Iowa State University, Department of Economics.
    • Babcock, Bruce A. & Beghin, John & Thomas, Katie & Heffernan, Keith & Olson, Becky & Kaus, Phillip, 2000. "Iowa Ag Review," Staff General Research Papers 1819, Iowa State University, Department of Economics.
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    • Babcock, Bruce A. & Clarke, Sandra & Hempe, Betty & Olson, Becky & Beghin, John & Heffernan, Keith & Hart, Chad, 2001. "Iowa Ag Review," Staff General Research Papers 1983, Iowa State University, Department of Economics.
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  13. 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.
  14. BOCCARD, Nicolas & WAUTHY, Xavier, 1999. "Relaxing Bertrand competition : capacity commitment beats quality differentiation," CORE Discussion Papers 1999056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
Full 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.)

  1. 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!]
  2. 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!]
    Other versions:
  3. Stephan Marette & Roxanne Clemens & Bruce A. Babcock, 2007. "Recent International and Regulatory Decisions about Geographical Indications, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 07-mwp10, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University. [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:
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