Measuring Consumers' Attachment to Geographical Indications
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Daniel Hassan
Geographical Indications (GIs) are considered as upmarket products because they are based on tradition and convey information about their geographical origin. Otherwise, the limitation of the geographical areas devoted to GIs and the exclusivity they benefit on the product lead to suspicions of monopoly power. Quality and market power should however reflect a stronger attachment, making consumers less price sensitive than for standard goods. This research aims to compare theses conjectures to empirical measures concerning the French cheese market. Price elasticities are computed from a demand model on 21 products, 11 Protected Designation of Origin (PDO) products and 10 non PDOs. The results are counterintuitive, PDOs being as price elastic as or more price elastic than standard products. This finding thus challenges the widespread idea that PDOs systematically correspond to high quality. It also has important implications in terms of competition policy, showing that PDO cheeses suppliers cannot decide on price increases without suffering large reductions in demand.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Article
- Tax Incidence When Quality Matters: Evidence from the Beer Market
- Market Efficiency in the Non-Genetically Modified Soybean Futures Market
- Do Taxes Produce Better Wine?
- Economic Effects of Purity Standards in Biotech Labeling Laws
- Does the Prevalence of Contract Hog Production Influence the Price Received by Independent Hog Producers?
- Impact of Country-of-Origin Labeling on Bovine Meat Trade
- Geographical Indications and The Trade Related Intellectual Property Rights Agreement (TRIPS): A Case Study of Basmati Rice Exports
- Measuring Consumers' Attachment to Geographical Indications
- Willingness to Pay for Fair Trade Coffee: A Conjoint Analysis Experiment with Italian Consumers
- Pressure Group Competition and GMO Regulations in Sub-Saharan Africa - Insights from the Becker Model
- Price Transmission and Volatility in the Greek Broiler Sector: A Threshold Cointegration Analysis
- Livestock Mandatory Price Reporting: A Literature Review and Synthesis of Related Market Information Research
