Protected Designation of Origin Revisited
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.
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Volume (Year): 8 (2010)
Issue (Month): 1 (August)
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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.:
- 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.
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- Moschini, GianCarlo & Menapace, Luisa & Pick, Daniel, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," Staff General Research Papers Archive 12858, Iowa State University, Department of Economics.
- 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.
- 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. Full references (including those not matched with items on IDEAS)