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Certification of Origin and Brands Competition

Author

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  • Chambolle, Claire
  • Giraud-Heraud, Eric

Abstract

We analyse the competition in quality and quantity between a foreign firm and a domestic firm. The domestic firm can belong to a certification of origin, whereas its rival uses a pure brand strategy. We will show how the certification can allow the domestic firm to position itself as a high quality producer and improve the average quality of the products offered on the market. If, however, the certified firm offers the low quality good, the certification can permit it to guarantee a higher profit than that of its competitor and to improve the consumers' surplus by favouring product standardisation.

Suggested Citation

  • Chambolle, Claire & Giraud-Heraud, Eric, 2002. "Certification of Origin and Brands Competition," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24976, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24976
    DOI: 10.22004/ag.econ.24976
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    References listed on IDEAS

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