IDEAS home Printed from
   My bibliography  Save this article

Übermäßige Werbung und Marktsegmentierung durch staatliche Förderung der Regionalvermarktung: Eine theoretische Analyse


  • Herrmann, Roland
  • Anders, Sven M.
  • Thompson, Stanley R.


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 – and cross-price advertising elasticities on the markets and by marginal costs of program participation.

Suggested Citation

  • Herrmann, Roland & Anders, Sven M. & Thompson, Stanley R., 2005. "Übermäßige Werbung und Marktsegmentierung durch staatliche Förderung der Regionalvermarktung: Eine theoretische Analyse," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(03), pages 1-11.
  • Handle: RePEc:ags:gjagec:97214
    DOI: 10.22004/ag.econ.97214

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. 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, January.
    2. 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.
    3. 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.
    4. Hoff, K & Claes, Roswitha, 1997. "Der Einfluss von Skandalen und Gemeinschaftswerbung auf die Nachfrage nach Rindfleisch," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 46(10).
    5. 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.
    6. 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, January.
    7. 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.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Herrmann, R. & Anders, S., 2004. "Ökonomische Implikationen einer stärkeren Förderung der Regionalvermarktung in der Agrarmarktpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 39.

    More about this item




    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.