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Markets segmented by regional-origin labelling with quality control

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  • Sven Anders
  • Stanley Thompson
  • Roland Herrmann

Abstract

It is the objective of this paper to provide a methodological framework for the analysis of regional marketing programs which inlclude regional-origin labelling as well as quality assurance and control. Such programs are increasingly being introduced in Europe and other parts of the world as a means against quality uncertainty in globalized markets. An equilibrim - displacement model is developed for a segmented market with differential qualities that can be utilized for a broad variety of marketing programs. It is applied to one selected European case, i.e. “Gepruefte Qualitaet - Bayern”. It is shown that the price impacts on high-quality and low-quality segments depend crucially on substitutive relationships between the markets and the advertising elasticities. Welfare implications for producers in a program depend strongly on advertising elasticities, too, but also on the costs of participation including quality control and on the co-financing mechanism between government and producers.

Suggested Citation

  • Sven Anders & Stanley Thompson & Roland Herrmann, 2009. "Markets segmented by regional-origin labelling with quality control," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 311-321.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:311-321
    DOI: 10.1080/00036840601007237
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    Cited by:

    1. Pradyot Ranjan Jena & Chuthaporn Ngokkuen & Dil Bahadur Rahut & Ulrike Grote, 2015. "Geographical indication protection and rural livelihoods: insights from India and Thailand," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 174-185, May.
    2. Ngokkuen, Chuthaporn & Grote, Ulrike, 2012. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-29, May.
    3. Isabel Bardají & Belén Iráizoz & Manuel Rapún, 2009. "Protected geographical indications and integration into the agribusiness system," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 198-214.

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