ÃœbermÃ¤ÃŸige Werbung und Marktsegmentierung durch staatliche FÃ¶rderung der Regionalvermarktung: Eine theoretische Analyse
The protection of the regional origin of foods is a major part of the food-quality policy in the EU. It is the objective of this article to analyze economic effects of such policy instruments. Two different types of policy are distinguished which are both designed to promote regional products. First, generic promotion of a homogeneous commodity at the national and/or regional level in the spirit of NERLOVE and WAUGH is investigated. This instrument aims at shifting the demand for the advertised commodity outward. We derive theoretically that excessive advertising does exist if several promotion activities at different regional levels exist at one time. It would be more cost-effective due to product substitutability to move from separate strategies at the level of states to a coordinated uniform generic promotion. Secondly, there is support in the EU for regional-origin labels which combine quality assurance with the regional label. Product heterogeneity arises here when regional products reach above-average quality and prices increase. A segmented market model is utilized to show that the price bonus is affected by the magnitude of promotion expenditures, by own â€“ and cross-price advertising elasticities on the markets and by marginal costs of program participation.
Volume (Year): 54 (2005)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: Philippstr. 13, 10115 Berlin|
Phone: +49 (0)30 2093 6305
Fax: +49 (0)30 2093 6497
Web page: http://www.gjae-online.de/
More information through EDIRC
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.:
- Swinnen, Johan F. M. & McCluskey, Jill & Francken, Nathalie, 2003.
"Food Safety, the Media, and the Information Market,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa: Plenary Sessions
245932, International Association of Agricultural Economists.
- Johan F. M. Swinnen & Jill McCluskey & Nathalie Francken, 2005. "Food safety, the media, and the information market," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 175-188, 01.
- Harry M. Kaiser & Todd M. Schmit, 2003. "Distributional effects of generic dairy advertising throughout the marketing channel," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 289-300.
- Julian M. Alston & John W. Freebairn & Jennifer S. James, 2001. "Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 888-902.
- Gary S. Becker & Kevin M. Murphy, 1993. "A Simple Theory of Advertising as a Good or Bad," The Quarterly Journal of Economics, Oxford University Press, vol. 108(4), pages 941-964.
- Herrmann Roland & Moeser Anke & Weber Sascha Alexander, 2005. "Price Rigidity in the German Grocery-Retailing Sector: Scanner-Data Evidence on Magnitude and Causes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(1), pages 1-37, February.
- H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1-4), pages 261-267.
When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:97214. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.