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Does Branded Food Product Advertising Help Or Hurt Farmers?

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  • Zhang, Mingxia
  • Sexton, Richard J.
  • Alston, Julian M.

Abstract

A two-stage model is developed to study food processing firms' brand advertising and its welfare effects on farmers in a duopsony/duoploy setting. In stage 1 firms compete to differentiate their products through brand advertising, and in stage 2 firms engage in quality competition. Farmers may benefit or lose form brand advertising under alternative market conditions.

Suggested Citation

  • Zhang, Mingxia & Sexton, Richard J. & Alston, Julian M., 1999. "Does Branded Food Product Advertising Help Or Hurt Farmers?," 1999 Annual meeting, August 8-11, Nashville, TN 21582, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea99:21582
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    References listed on IDEAS

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    1. Bester, Helmut & Petrakis, Emmanuel, 1995. "Price competition and advertising in oligopoly," European Economic Review, Elsevier, vol. 39(6), pages 1075-1088, June.
    2. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A. & Crespi, John M. & Sexton, Richard J. & Venner, Raymond J., 1998. "The California Prune Board's Promotion Program: An Evaluation," Research Reports 11926, University of California, Davis, Giannini Foundation.
    3. Gasmi, F & Laffont, J J & Vuong, Q, 1992. "Econometric Analysis of Collusive Behavior in a Soft-Drink Market," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(2), pages 277-311, Summer.
    4. Mills, David E, 1999. "Private Labels and Manufacturer Counterstrategies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 125-145, June.
    5. Franklin, Andrew W. & Cotterill, Ronald W., 1994. "Pricing and Market Strategies in the National Branded Cheese Industry," Research Reports 25170, University of Connecticut, Food Marketing Policy Center.
    6. Alston, Julian M. & Chalfant, James A. & Christian, Jason E. & Meng, Erika C.H. & Piggott, Nicholas E., 1997. "The California Table Grape Commission's Promotion Program: An Evaluation," Monographs, University of California, Davis, Giannini Foundation, number 11932.
    7. Bontems, Philippe & Monier-Dilhan, Sylvette & Requillart, Vincent, 1999. "Strategic Effects of Private Labels," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 147-165, June.
    8. Timothy J. Richards & Paul M. Patterson & Ram N. Acharya, 2001. "Price Behavior in a Dynamic Oligopsony: Washington Processing Potatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 259-271.
    9. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
    10. Ferrero, Jennifer L. & Boon, Leen & Kaiser, Harry M. & Forker, Olan D., 1996. "Annotated Bibliography of Generic Commodity Promotion Research," Research Bulletins 122819, Cornell University, Department of Applied Economics and Management.
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    Cited by:

    1. Goddard, Ellen W. & Freebairn, John W. & Griffith, Garry R., 2003. "Issues in evaluating generic promotion in the food chain," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57871, Australian Agricultural and Resource Economics Society.

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    Marketing;

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