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Measuring consumers' attachment to geographical indications

Author

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  • Sylvette Monier Dilhan

    (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)

  • Daniel Hassan

    (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)

  • Valérie Orozco

    (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)

Abstract

Geographical Indications (GIs) are considered as upmarket products because they are based on tradition and convey information about their geographical origin. Otherwise, the limitation of the geographical areas devoted to GIs and the exclusivity they benefit on the product lead to suspicions of monopoly power. Quality and market power should however reflect a stronger attachment, making consumers less price sensitive than for standard goods. This research aims to compare theses conjectures to empirical measures concerning the French cheese market. Price elasticities are computed from a demand model on 21 products, 11 Protected Designation of Origin (PDO) products and 10 non PDOs. The results are counterintuitive, PDOs being as price elastic as or more price elastic than standard products. This finding thus challenges the widespread idea that PDOs systematically correspond to high quality. It also has important implications in terms of competition policy, showing that PDO cheeses suppliers cannot decide on price increases without suffering large reductions in demand.

Suggested Citation

  • Sylvette Monier Dilhan & Daniel Hassan & Valérie Orozco, 2011. "Measuring consumers' attachment to geographical indications," Post-Print hal-02646992, HAL.
  • Handle: RePEc:hal:journl:hal-02646992
    DOI: 10.2202/1542-0485.1335
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    Cited by:

    1. 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).
    2. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    3. Tobias Chilla & Benedikt Fink & Richard Balling & Simon Reitmeier & Karola Schober, 2020. "The EU Food Label ‘Protected Geographical Indication’: Economic Implications and Their Spatial Dimension," Sustainability, MDPI, vol. 12(14), pages 1-21, July.
    4. Zohra Bouamra & Vincent Chatellier & Angela Cheptea & K Hervé Dakpo & Yann Desjeux & Sabine Duvaleix-Treguer & Carl Gaigné & Marilyne Huchet & Philippe Jeanneaux & Karine Latouche & Laure Latruffe, 2018. "La compétitivité des filières animales françaises," Working Papers hal-02439979, HAL.
    5. Gelaw, F., 2018. "Impacts of Trademarking on Export and Producer Prices in Ethiopian Coffee," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277290, International Association of Agricultural Economists.
    6. Török, Áron & Maró, Zalán Márk, 2020. "A földrajzi árujelzők gazdaságtana - az empirikus bizonyítékok [The economics of geographical indicators - empirical evidence]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 263-288.
    7. Áron Török & Lili Jantyik & Zalán Márk Maró & Hazel V. J. Moir, 2020. "Understanding the Real-World Impact of Geographical Indications: A Critical Review of the Empirical Economic Literature," Sustainability, MDPI, vol. 12(22), pages 1-24, November.
    8. Jianyu Yu & Zohra Bouamra-Mechemache, 2016. "Production standards, competition and vertical relationship," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(1), pages 79-111.
    9. Maria Lisa Clodoveo & Ahmed Yangui & Mahdi Fendri & Simona Giordano & Pasquale Crupi & Filomena Corbo, 2021. "Protected Geographical Indications for EVOO in Tunisia: Towards Environmental, Social, and Economic Sustainable Development," Sustainability, MDPI, vol. 13(20), pages 1-29, October.

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