IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Raising rivals’ costs strategy: test on two LAFS in Europe

Listed author(s):
  • Jeanneaux, Philippe
  • Barjolle, Dominique
  • Meyer, Dorothee

Some Localised Agro-Food Systems (LAFS) are traditionally qualified as success stories (Comté PDO in France, Gruyere PDO in Switzerland, Parmigiano Reggiano PDO in Italy), whilst other PDOs (as for example the Cantal PDO from France) pay the same price for the milk as standard milk. The price difference may reach between 10 and 25% over a long period. To explain this difference, we assume that the agents who make up the LAFS developed a collective action to protect their localized cheese production system against unfair competition and to promote their product outside its region of origin. The aim of this communication is to shed light on levers which the agents activate to assure their uniqueness is irrevocable, and uphold the benefits of their LAFS. We propose to discuss the idea that the search for market power based on the strategy of raising rivals’ costs may be used even outside a situation of vertical integration or a situation in which pressure is applied to suppliers to challenge competitors. We assume that some companies within the LAFS have sufficient control on the rules governing the organization of the traditional system to benefit from it. They also succeed in protecting a kind of relationship between business companies. The Raising Rivals’ Costs theory helps to analyze the economic consequences of the legal set-up implementation and of its control by some companies. Indeed, we show that the collective control of the rules which are set up in the PDO legal framework explain the difficulties met by rivals to stand out through an alternative and independent production system based on the costs leadership strategy. The collective set up of institutions and rules help the agents to achieve a collective competitive advantage in which every agent benefits individually. This is the strategy developed in Europe and particularly for two PDO Localised Agro-cheese Systems: Comté PDO for France and Gruyère PDO for Switzerland.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by European Association of Agricultural Economists in its series 116th Seminar, October 27-30, 2010, Parma, Italy with number 95040.

in new window

Date of creation: 27 Oct 2010
Handle: RePEc:ags:eaa116:95040
Contact details of provider: Web page:

More information through EDIRC

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.:

in new window

  1. Barjolle, Dominique & Chappuis, Jean-Marc & Dufour, Martine, 1999. "Competitive position of some PDO cheeses on their own reference market: identification of the key success factors," 67th Seminar, October 28-30, 1999, LeMans, France 241118, European Association of Agricultural Economists.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:eaa116:95040. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.