Are geographical indications a worthy quality label? A framework with endogenous quality choice

Marion Desquilbet and Sylvette Monier-Dilhan

European Review of Agricultural Economics, 2015, vol. 42, issue 1, 129-150

Abstract: We analyse the effects of geographical indication labelling on quality choices and welfare in a vertical differentiation framework with two attributes of 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 as long the PDO good is the high-quality good, binding production specifications on the quality level adversely affect the PDO producer(s).

Date: 2015
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Working Paper: Are geographical indications a worthy quality label? A framework with endogenous quality choice (2015)
Working Paper: Are geographical indications a worthy quality label? A framework with endogenous quality choice (2012)
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