Markets Segmented by Regional-Origin Labelling with Quality Control

Roland Herrmann (1) , Sven Anders (1, 2) , Stanley R. Thompson (3)

1 Institute for Agricultural Policy and Market Research
2 Resource Economics
3 Agricultural, Environmental, and Development Economics

Abstract It is the objective of this paper to provide a methodological framework for the analysis of regional-marketing programs which include regional-origin labelling 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.

Mots clés: Social Sciences & Humanities

Roland Herrmann, Sven Anders, Stanley R. Thompson. Markets Segmented by Regional-Origin Labelling with Quality Control. Applied Economics, 2009, 41 (03), pp.311-321. ⟨10.1080/00036840601007237⟩. ⟨hal-00582032⟩