Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Published Version

Publication Date

8-2008

Journal or Book Title

American Journal of Agricultural Economics

Volume

90

Issue

3

First Page or Article ID Number

794

Last Page

812

DOI

10.1111/j.1467-8276.2008.01142.x

Abstract

The economics of geographical indications (GIs) is assessed within a vertical product differentiation framework that is consistent with the competitive structure of agriculture. It is assumed that certification costs are needed for GIs to serve as (collective) credible quality certification devices, and production of high-quality product is endogenously determined. We find that GIs can support a competitive provision of quality and lead to clear welfare gains, although they fall short of delivering the (constrained) first best. The main beneficiaries are consumers. Producers may also accrue some benefit if production of the high-quality products draws on scarce factors that they own.

JEL Classification

L15, Q13, R12

Comments

This is an article from American Journal of Agricultural Economics 90 (2008): 794, doi: 10.1111/j.1467-8276.2008.01142.x.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

Working Paper

Share

COinS