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Desquilbet, Marion and Monier-Dilhan, Sylvette
(2011)
Are geographical indications a worthy quality label? A framework with endogenous quality choice.
TSE Working Paper, n. 11-263
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Abstract
We analyze the effects of Geographical Indication (GI) labeling on quality choices and
welfare with two vertically differentiated goods, one labelable, the other not. We consider two
attributes of these 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 the PDO good is not necessarily the high-quality good. When it is, the
introduction of the denomination standard causes its quality to decrease. Binding production
specifications that maintain the quality level of the labeled good adversely affect the PDO firm.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | December 2011 |
| JEL Classification: | D21 - Firm Behavior L13 - Oligopoly and Other Imperfect Markets L15 - Information and Product Quality; Standardization and Compatibility Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 18 Jan 2012 06:04 |
| Last Modified: | 02 Apr 2021 15:36 |
| OAI Identifier: | oai:tse-fr.eu:25317 |
| URI: | https://publications.ut-capitole.fr/id/eprint/3637 |
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