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Markets Segmented by Regional - Origin Labeling with Quality Control

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  • Thompson, Stanley R.
  • Anders, Sven M.
  • Herrmann, Roland

Abstract

It is the objective of this paper to provide a methodological framework for the analysis of regional marketing programs which include regional-origin labeling as well as quality assurance and control. Such programs are increasingly introduced in Europe and other parts of the world as a means against quality uncertainty in globalized markets. An equilibrium - displacement model is developed for a segmented market with differential qualities that can be utilized for a broad variety of marketing programs. It is applied to one selected European case, i.e. "Gepruefte Qualitaet - Bayern". It is shown that the price impacts on high-quality and low-quality segments depend crucially on substitutive relationships between the markets and the advertising elasticities. Welfare implications for producers in a program depend strongly on advertising elasticities, too, but also on the costs of participation including quality control and on the co-financing mechanism between government and producers.

Suggested Citation

  • Thompson, Stanley R. & Anders, Sven M. & Herrmann, Roland, 2006. "Markets Segmented by Regional - Origin Labeling with Quality Control," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25530, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25530
    DOI: 10.22004/ag.econ.25530
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    References listed on IDEAS

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    1. Chung, Chanjin & Zhang, Tong & Peel, Derrell S., 2004. "Will Country-Of-Origin Labeling (Cool) Be 'Cool' For The U.S. Meat Industry?," 2004 Annual meeting, August 1-4, Denver, CO 19934, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Pradyot Ranjan Jena & Chuthaporn Ngokkuen & Dil Bahadur Rahut & Ulrike Grote, 2015. "Geographical indication protection and rural livelihoods: insights from India and Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 174-185, May.
    2. Isabel Bardají & Belén Iráizoz & Manuel Rapún, 2009. "Protected geographical indications and integration into the agribusiness system," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 198-214.
    3. Ngokkuen, Chuthaporn & Grote, Ulrike, 2012. "Geographical Indication for Jasmine Rice: Applying a Logit Model to Predict Adoption Behavior of Thai Farm Households," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-29, May.

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    1. Thompson, Stanley R. & Anders, Sven M. & Herrmann, Roland, 2005. "Regional-Origin Labeling with Quality Control: An Economic Analysis," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24656, European Association of Agricultural Economists.

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    Marketing;

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