Economic determinants of differences in the composition of seemingly identical branded food products in the EU

Kjersti Nes (), Pavel Ciaian and Federica Di Marcantonio ()
Additional contact information
Kjersti Nes: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Federica Di Marcantonio: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en

No JRC119221, JRC Research Reports from Joint Research Centre

Abstract: This report provides an econometric estimation of the economic determinants of differences in the composition of seemingly identical branded food products (DC-SIP) in the European Union. The analyses of this report is based on the results from the EU wide testing campaign (European Commission, 2019) in combination with economic data collected from different statistical sources (e.g. Eurostat, Eurobarometer, World Bank, Global Dietary Database). Econometric estimation — probit estimator — is performed on these combined dataset to quantitatively identify drivers of DC-SIP. The estimated results show that the difference in income levels between two Member States has a statistically significant positive effect on the probability of the two MS having a different version of seemingly identical branded food products. The estimation of this report also show that other factors—such as heterogeneous consumer preferences across MS, distance, company size, price level and product complexity—also contribute to a firm’s incentive to offer different versions of seemingly identical branded food products in different MS. Further, specific characteristics of different product categories and country-specific factors are also found to impact the presence of DC-SIP between MS.

Keywords: dual food quality; food chain; branded food products; differences in composition; consumers (search for similar items in EconPapers)
JEL-codes: D12 D91 L11 L15 L66 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2020-05
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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Journal Article: Economic determinants of differences in the composition of seemingly identical branded food products in the EU (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc119221

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