Markets Segmented by Regional - Origin Labeling with Quality Control

Stanley Thompson (), Sven Anders and Roland Herrmann

No 25530, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

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.

Keywords: Marketing (search for similar items in EconPapers)
Pages: 25
Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Markets segmented by regional-origin labelling with quality control (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25530

DOI: 10.22004/ag.econ.25530

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