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Quality certification by geographical indications, trademarks and firm reputation

  • Luisa Menapace
  • GianCarlo Moschini

We develop a reputation model to study the concurrent use of trademarks and certification for food products with a geographical indication (GI). The model extends Shapiro's (1983) approach to modelling reputation to a situation in which two technologies for the production of quality are available, one of which is available only in the GI region. In this setting, trademarks capture firm-specific reputations, whereas GI certification captures a notion of collective reputation. The model shows that GI certification improves the ability of reputation to operate as a mechanism for assuring quality linked to some inherent attributes of a particular production area. , Oxford University Press.

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Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 39 (2012)
Issue (Month): 4 (September)
Pages: 539-566

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Handle: RePEc:oup:erevae:v:39:y:2012:i:4:p:539-566
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  1. Cabral, L.M.B., 2000. "Stretching Firm and Brand Reputation," New York University, Leonard N. Stern School Finance Department Working Paper Seires 00-07, New York University, Leonard N. Stern School of Business-.
  2. Moschini, GianCarlo & Menapace, Luisa & Pick, Daniel, 2008. "Geographical Indications and the Competitive Provision of Quality in Agricultural Markets," Staff General Research Papers 12858, Iowa State University, Department of Economics.
  3. Bar-Isaac, Heski & Tadelis, Steven, 2008. "Seller Reputation," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(4), pages 273-351, August.
  4. Lence, Sergio H. & Marette, Stephan & Hayes, Dermot J. & Forster, Bruce A., 2007. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications," Staff General Research Papers 12758, Iowa State University, Department of Economics.
  5. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
  6. Falvey, Rodney E, 1989. "Trade, Quality Reputations and Commercial Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 607-22, August.
  7. Moschini, GianCarlo, 2004. "Intellectual Property Rights and the World Trade Organization: Retrospect and Prospects," Staff General Research Papers 10442, Iowa State University, Department of Economics.
  8. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation : The Case of Coffee," Discussion Papers 33, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
  9. Winfree, Jason A. & McCluskey, Jill J., 2003. "Collective Reputation And Quality," 2003 Annual meeting, July 27-30, Montreal, Canada 21927, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August.
  11. Rafael Rob & Arthur Fishman, 2005. "Is Bigger Better? Customer Base Expansion through Word-of-Mouth Reputation," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 1146-1175, October.
  12. Bramley, Cerkia & Kirsten, Johann F., 2007. "Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
  13. Akerlof, George A, 1970. "The Market for 'Lemons': Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 84(3), pages 488-500, August.
  14. Zago, Angelo M. & Pick, Daniel H., 2004. "Labeling Policies in Food Markets: Private Incentives, Public Intervention, and Welfare Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(01), April.
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