Publication Date:
2015-02-06
Description:
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).
Keywords:
D21 - Firm Behavior, L13 - Oligopoly and Other Imperfect Markets, L15 - Information and Product Quality
;
Standardization and Compatibility, Q13 - Agricultural Markets and Marketing
;
Cooperatives
;
Agribusiness
Print ISSN:
0165-1587
Electronic ISSN:
1464-3618
Topics:
Agriculture, Forestry, Horticulture, Fishery, Domestic Science, Nutrition
,
Economics
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