Free-rider effects of generic advertising: The case of salmon
The free-rider effects of commodity promotion are a neglected issue in the empirical literature. This study addresses the lacuna by considering the salmon promotion program conducted by the Norwegian Seafood Export Council. Specifically, a model of the world salmon market is used to indicate returns to Norwegian producers from NSEC's marketing activities, but also returns to Norway's international competitors. Results suggest program intensification would have a positive effect on total (worldwide) producer surplus in the short run, but the gain's distribution is uneven. Specifically, Norway would receive 23% of the gain compared to 48% for United Kingdom producers. By way of comparison, Norway and UK world trade shares are 47 and 16%, respectively. The disproportionate gains to UK producers are due to a double free ride: from the export tax used to fund the advertising increase, and from the advertising itself. [EconLit citations: L660, Q130, Q170]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 315-324, 2003.
Volume (Year): 19 (2003)
Issue (Month): 3 ()
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References listed on IDEAS
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- Frank Asche, 2001.
"Testing the effect of an anti-dumping duty: The US salmon market,"
Springer, vol. 26(2), pages 343-355.
- Asche, F., 1998. "Testing the Effect of an Anti-Dumping Duty: the US Salmon Market," Papers 26/98, Norwegian School of Economics and Business Administration-.
- Asche, Frank, 1999. "Testing The Effect Of An Anti-Dumping Duty: The Us Salmon Market," 1999 Annual meeting, August 8-11, Nashville, TN 21714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Chanjin Chung & Harry M. Kaiser, 1999. "Distribution of Gains from Research and Promotion in Multistage Production Systems: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 593-597.
- Goddard, Ellen W. & Conboy, Paula, 1993. "Optimal International Promotion Expenditure for Differentiated Products," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(01), April.
- Hill, D. J. & Piggott, R. R. & Griffith, G. R., 2001. "Profitability of incremental generic promotion of Australian dairy products," Agricultural Economics, Blackwell, vol. 26(3), pages 253-266, December.
- Kinnucan, Henry W. & Myrland, Oystein, 2002. "Relative Impact of the Norway-EU Salmon Agreement: A Midterm Assessment," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24826, European Association of Agricultural Economists. Full references (including those not matched with items on IDEAS)
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