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Protected Designation of Origin Revisited


  • Bouamra-Mechemache Zohra

    (Toulouse School of Economics)

  • Chaaban Jad

    (American University of Beirut)


This paper explores the impacts of Protected Designation of Origin (PDO) certification on the costs and profits of firms as well as consumers and total welfare. The paper argues that PDO labels are different from other common labeling schemes, as they involve technological and capacity constraints that influence their economic efficiency. Using a theoretical model of endogenous quality choice, which incorporates vertical differentiation with the costs constraints linked to the PDO label, we explore the way producers can signal their quality either by certifying their product through PDO or by investing in a collective private common label. Results show that even if PDOs are efficient from a producer perspective, a society might be better off with less stringent techniques of quality signaling, relying on private collective certification.

Suggested Citation

  • Bouamra-Mechemache Zohra & Chaaban Jad, 2010. "Protected Designation of Origin Revisited," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-29, August.
  • Handle: RePEc:bpj:bjafio:v:8:y:2010:i:1:n:5

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    References listed on IDEAS

    1. Eric Giraud-Héraud & Claire Chambolle, 2003. "Certification de la qualité par une AOC : un modèle d’analyse," Économie et Prévision, Programme National Persée, vol. 159(3), pages 83-91.
    2. Hassan, Daniel & Monier-Dilhan, Sylvette, 2002. "Signes De Qualité Et Qualité Des Signes : Une Application Au Marché Du Camembert," Cahiers d'Economie et de Sociologie Rurales (CESR), INRA (French National Institute for Agricultural Research), vol. 65.
    3. Daniel Pick, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 794-812.
    4. Zohra Bouamra-Mechemache & Jad Chaaban, 2010. "Determinants of Adoption of Protected Designation of Origin Label: Evidence from the French Brie Cheese Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(2), pages 225-239.
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    Cited by:

    1. Marion Desquilbet & Sylvette Monier-Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 42(1), pages 129-150.
    2. Teuber, Ramona, 2011. "Protecting Geographical Indications: Lessons learned from the Economic Literature," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116081, European Association of Agricultural Economists.
    3. Bouamra-Mechemache, Zohra & Yu, Jianyu, 2011. "Quality Choice, Competition and Vertical Relationship in a Market of Protected Designation of Origin," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103607, Agricultural and Applied Economics Association.
    4. Di Vita, Giuseppe & D'Amico, Mario, 2013. "Origin Designation And Profitability For Small Wine Grape Growers: Evidence From A Comparative Study," Economics of Agriculture, Institute of Agricultural Economics, vol. 60(1).
    5. Tauber, Ramona & Anders, Sven M. & Langinier, Corinne, 2011. "The Economics of Geographical Indications: Welfare Implications," Working Papers 103262, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    6. Mulik Kranti & Crespi John M., 2011. "Geographical Indications and The Trade Related Intellectual Property Rights Agreement (TRIPS): A Case Study of Basmati Rice Exports," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-21, May.
    7. Zakaria Sorgho & Bruno Larue, 2014. "Geographical indication regulation and intra-trade in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 1-12, November.
    8. Bouamra-Mechemache, Zohra & Chaaban, Jad, 2010. "Is the Protected Designation of Origin (PDO) Policy Successful in Sustaining Rural Employment?," 116th Seminar, October 27-30, 2010, Parma, Italy 94987, European Association of Agricultural Economists.

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