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Economic rationale behind differences in the composition of seemingly identical branded food products in the Single Market

Author

Listed:
  • Carlo Russo

    (University of Cassino and Lazio Meridionale)

  • Luisa Menapace

    (Technical University of Munich – Tum)

  • Marcello Sansone

    (University of Cassino and Lazio Meridionale)

  • Edward Kyei Twum

    (University of Cassino and Lazio Meridionale)

  • Negin Fathinejad

    (University of Cassino and Lazio Meridionale)

  • Annarita Colamatteo

    (University of Cassino and Lazio Meridionale)

  • Maria Anna Pagnanelli

    (University of Cassino and Lazio Meridionale)

Abstract

This report presents the results of a review of the economic literature about the problem of Difference in Composition of Seemingly Identical Branded Product (DC-SIP). The problem is also referred to as dual quality. Academic literature about DC-SIP is almost non-existent. Consequently, this report focuses on contributions that are indirectly related to the topic and yet are able to foster an understanding of the economic principles of DC-SIP. The report provides a conceptual analysis in order to explain the rationale for brand owners to use DC-SIP practices and policy related issues; it does not bring empirical evidence as it is not available in the literature.

Suggested Citation

  • Carlo Russo & Luisa Menapace & Marcello Sansone & Edward Kyei Twum & Negin Fathinejad & Annarita Colamatteo & Maria Anna Pagnanelli, 2020. "Economic rationale behind differences in the composition of seemingly identical branded food products in the Single Market," JRC Research Reports JRC117796, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc117796
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC117796
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    References listed on IDEAS

    as
    1. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    2. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
    3. Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(3), pages 369-391, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nes, Kjersti & Ciaian, Pavel & Di Marcantonio, Federica, 2021. "Economic determinants of differences in the composition of seemingly identical branded food products in the EU," Food Policy, Elsevier, vol. 100(C).
    2. Liesbeth Colen & George Chryssochoidis & Pavel Ciaian & Federica Di Marcantonio, 2020. "Differences in composition of seemingly identical branded products: Impact on consumer purchase decisions and welfare," JRC Research Reports JRC118149, Joint Research Centre.
    3. Lucie Severová & Roman Svoboda & Karel Šrédl & Marie Prášilová & Alexandr Soukup & Lenka Kopecká & Marek Dvořák, 2021. "Food Safety and Quality in Connection with the Change of Consumer Choice in Czechia (a Case Study)," Sustainability, MDPI, vol. 13(11), pages 1-20, June.

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    More about this item

    Keywords

    dual food quality; food chain; branded food products; differences in composition; quality discrimination;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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