IDEAS home Printed from https://ideas.repec.org/p/ias/cpaper/05-wp405.html
   My bibliography  Save this paper

Common Labels and Market Mechanisms

Author

Listed:
  • Christine Boizot-Szantai
  • Sébastien Lecocq
  • Stéphan Marette

Abstract

In this article, the impact of common labels is investigated with both theoretical and empirical approaches. Recent statistics regarding the egg market in France suggest that retailer brands largely adopt common labels. A simple theoretical framework enables us to determine the conditions under which producers and/or retailers with different product qualities decide to post a common label on their products. In particular, a situation of multiple equilibria (one where the label is used by the high-quality seller only and one where it is used by the low-quality seller only) is exhibited when the cost of the label is relatively large. The demand is then estimated for different segments of the French egg market, including producer/retailer brands with/without common labels. The estimates are used to derive expenditure and price elasticities and allow us to calculate welfare measures revealing a relatively large willingness-to-pay for labels.

Suggested Citation

  • Christine Boizot-Szantai & Sébastien Lecocq & Stéphan Marette, 2005. "Common Labels and Market Mechanisms," Center for Agricultural and Rural Development (CARD) Publications 05-wp405, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:05-wp405
    as

    Download full text from publisher

    File URL: https://www.card.iastate.edu/products/publications/pdf/05wp405.pdf
    File Function: Full Text
    Download Restriction: no
    File URL: https://www.card.iastate.edu/products/publications/synopsis/?p=867
    File Function: Online Synopsis
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fares, M’hand & Raza, Saqlain & Thomas, Alban, 2018. "Is there complementarity between labels and brands? Evidence from small French co-operatives," TSE Working Papers 18-895, Toulouse School of Economics (TSE).
    2. Bougherara Douadia & Ropars-Collet Carole & Saint-Gilles Jude, 2022. "Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 20(1), pages 39-59, May.
    3. Mireia Ercilla-Montserrat & David Sanjuan-Delmás & Esther Sanyé-Mengual & Laura Calvet-Mir & Karla Banderas & Joan Rieradevall & Xavier Gabarrell, 2019. "Analysis of the consumer’s perception of urban food products from a soilless system in rooftop greenhouses: a case study from the Mediterranean area of Barcelona (Spain)," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(3), pages 375-393, September.
    4. Stéphan Marette, 2005. "The Collective-Quality Promotion in the Agribusiness Sector: An Overview," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 05-wp406, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Dentoni, Domenico & Menozzi, Davide & Capelli, Maria Giacinta, 2010. "Heterogeneity of Members’ Characteristics and Cooperation within Producer Groups Regulating Geographical Indications: The Case of the “Prosciutto di Parma” Consortium," 116th Seminar, October 27-30, 2010, Parma, Italy 95203, European Association of Agricultural Economists.
    6. M’hand Fares & Saqlain Raza & Alban Thomas, 2018. "Is There Complementarity Between Certified Labels and Brands? Evidence from Small French Cooperatives," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(2), pages 367-395, September.

    More about this item

    Keywords

    competition; demand estimation; labels; product differentiation.;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ias:cpaper:05-wp405. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/caiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.