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Are geographical indications a worthy quality label? A framework with endogenous quality choice
[Les indications géographiques, un label de qualité estimable ? Un cadre d'analyse avec choix de qualité endogène]

Author

Listed:
  • Marion Desquilbet

    (GREMAQ - Groupe de recherche en économie mathématique et quantitative - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Sylvette Monier Dilhan

    (US ODR - Observatoire des Programmes Communautaires de Développement Rural - INRA - Institut National de la Recherche Agronomique)

Abstract

We analyse the effects of geographical indication labelling on quality choices and welfare in a vertical differentiation framework with two attributes of goods, gustatory quality and geographical origin. We investigate two extreme cases of the protected designation of origin (PDO) label: a denomination standard, which guarantees only the origin of the product without any requirement on production specifications, and a minimum quality requirement, which guarantees both the origin and the quality of the product. We find that as long the PDO good is the high-quality good, binding production specifications on the quality level adversely affect the PDO producer(s).

Suggested Citation

  • Marion Desquilbet & Sylvette Monier Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice [Les indications géographiques, un label de qualité estimable ? Un cadre d'analyse avec choix de qualité endogène]," Post-Print hal-02631791, HAL.
    • Handle: RePEc:hal:journl:hal-02631791
    DOI: 10.1093/erae/jbu008
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    Cited by:

    1. Koen Deconinck & Johan Swinnen, 2014. "The Political Economy of Geographical Indications," LICOS Discussion Papers 35814, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Costanigro, Marco & Scozzafava, Gabriele & Casini, Leonardo, 2019. "Vertical differentiation via multi-tier geographical indications and the consumer perception of quality: The case of Chianti wines," Food Policy, Elsevier, vol. 83(C), pages 246-259.
    3. DESBOIS, Dominique, 2015. "La qualité du lait a-t-elle un prix ? Une estimation hédonique de la valeur des attributs spécifiques du lait de vache," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(3), September.
    4. Duvaleix, Sabine & Emlinger, Charlotte & Gaigné, Carl & Latouche, Karine, 2021. "Geographical indications and trade: Firm-level evidence from the French cheese industry," Food Policy, Elsevier, vol. 102(C).
    5. Dubravka Užar & Jelena Filipović, 2023. "Determinants of Consumer Purchase Intention Towards Cheeses with Geographical Indication in a Developing Country: Extending the Theory of Planned Behavior," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 35(2), pages 183-204.
    6. Valentina Raimondi & Chiara Falco & Daniele Curzi & Alessandro Olper, 2020. "Trade effects of geographical indication policy: The EU case," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(2), pages 330-356, June.
    7. Rackl, Jakob & Menapace, Luisa, 2025. "Coordination in agri-food supply chains: The role of Geographical Indication certification," International Journal of Production Economics, Elsevier, vol. 280(C).
    8. Anna Carbone, 2017. "Erratum to: Food supply chains: coordination governance and other shaping forces," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-1, December.
    9. Belletti, Giovanni & Marescotti, Andrea & Touzard, Jean-Marc, 2017. "Geographical Indications, Public Goods, and Sustainable Development: The Roles of Actors’ Strategies and Public Policies," World Development, Elsevier, vol. 98(C), pages 45-57.
    10. Huysmans, Martijn, 2021. "On Feta and Fetta: Protecting EU Geographical Indications Down Under," 2021 Conference, August 17-31, 2021, Virtual 314978, International Association of Agricultural Economists.
    11. Takayama, Taisuke & Norito, Takashi & Nakatani, Tomoaki & Ito, Ryoji, 2021. "Do geographical indications preserve farming in rural areas? Evidence from a natural experiment in Japan," Food Policy, Elsevier, vol. 102(C).
    12. Leufkens, D., . "Der Wert geschützter Herkunftsangaben in einer industrieökonomischen und hedonischen Preisanalyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50.
    13. Catherine Haeck & Giulia Meloni & Johan Swinnen, 2019. "The Value of Terroir: A Historical Analysis of the Bordeaux and Champagne Geographical Indications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 598-619, December.
    14. Martijn Huysmans & D. van Noord, 2021. "The market for lemons from Sorrento and Gouda from Holland. Do geographical indications certify origin and quality?: Do geographical indications certify origin and quality?," Working Papers 2108, Utrecht School of Economics.
    15. Petit, Michel & Ilbert, Helene, 2015. "Geographic Indicators and Rural Development in North Africa Implications for TTIP Negotiations," 145th Seminar, April 14-15, 2015, Parma, Italy 200231, European Association of Agricultural Economists.
    16. Martijn Huysmans, 2022. "On Feta and Fetta: Protecting EU geographical indications in Australia," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 598-613, June.
    17. Leufkens, Daniel, 2014. "Der Wert Geschützter Herkunftsangaben In Einer Industrieökonomischen Und Hedonischen Preisanalyse," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187429, German Association of Agricultural Economists (GEWISOLA).
    18. Sorgho Zakaria & Larue Bruno, 2018. "Do Geographical Indications Really Increase Trade? A Conceptual Framework and Empirics," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(1), pages 1-18, January.
    19. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    20. Marie-Vivien, Delphine & Biénabe, Estelle, 2017. "The Multifaceted Role of the State in the Protection of Geographical Indications: A Worldwide Review," World Development, Elsevier, vol. 98(C), pages 1-11.
    21. Daniele Curzi & Martijn Huysmans, 2022. "The Impact of Protecting EU Geographical Indications in Trade Agreements," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 364-384, January.
    22. Haiou Mao & Holger Görg, 2025. "Don't take me for a free‐ride: Chinese Agricultural Geographical Indications and firms' export quality," Agricultural Economics, International Association of Agricultural Economists, vol. 56(2), pages 188-209, March.
    23. Hongkai Qie & Hui Chen & Yong Lu & Xiaoyu Zhao & Zhiwei Wang, 2025. "RETRACTED ARTICLE: Evaluating the Impact of Agricultural Product Geographical Indication Program on Rural Income: A Case Study of the Yangtze River Delta Region in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 556-580, March.
    24. Zakaria Sorgho & Bruno Larue, 2014. "Geographical indication regulation and intra-trade in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 1-12, November.
    25. Mariah Dolsen Ehmke & Alessandro Bonanno & Kathryn Boys & Trenton G. Smith, 2019. "Food fraud: economic insights into the dark side of incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 685-700, October.

    More about this item

    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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