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Public Labeling Revisited: The Role of Technological Constraints Under Protected Designation of Origin Regulation

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Listed:
  • Benitez, Daniel
  • Bouamra-Mechemache, Zohra
  • Chaaban, Jad

Abstract

This paper takes into account technological and output constraints for firms to analyse PDO regulation. We first examine an original dataset of French Brie cheese producers and compare the cost structure of PDO producers with non-PDO ones. The paper also finds that PDO firms face a more costly production technology and do not profit from scale economies. Then, based on a theoretical model, the paper shows a clear tradeoff between the sunk advertising costs (net of certification costs) and the degree of diseconomies of scale. This tradeoff affects both the firms' incentive to certify, and the efficiency of public certification.

Suggested Citation

  • Benitez, Daniel & Bouamra-Mechemache, Zohra & Chaaban, Jad, 2005. "Public Labeling Revisited: The Role of Technological Constraints Under Protected Designation of Origin Regulation," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24668, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24668
    DOI: 10.22004/ag.econ.24668
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    File URL: https://ageconsearch.umn.edu/record/24668/files/cp05be01.pdf
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    References listed on IDEAS

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    1. Hassan, Daniel & Monier-Dilhan, Sylvette, 2002. "Signes De Qualité Et Qualité Des Signes : Une Application Au Marché Du Camembert," Cahiers d'Economie et de Sociologie Rurales (CESR), Institut National de la Recherche Agronomique (INRA), vol. 65.
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    Cited by:

    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.

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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • 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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