Title

How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?

Campus Units

Center for Agricultural and Rural Development, Economics

Document Type

Book Chapter

Publication Version

Submitted Manuscript

Publication Date

2013

Journal or Book Title

Non-Tariff Measures with Market Imperfections: Trade & Welfare Implications in the Frontiers of Economics & Globalization

Volume

12

Editors

John Beghin

Publisher

Emerald Group Publishing Limited

Place of Publication

Bingley, West Yorkshire, UK

First Page or Article ID Number

73

Last Page

98

DOI

10.1108/S1574-8715(2013)0000012018

Abstract

In the context of the wine industry, we investigate producers' choice between geographical indications and brand advertising to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We show that if this effort level is selected, a producer will prefer to rely on brand advertising for promoting its products and setting up its own reputation. Despite allowing the cost of promotion to be shared, a geographical indication does not sufficiently reward the effort to improve quality. Finally, the selection of both instruments by producers is examined.

Comments

This is a working paper published as “How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?” in J.C. Beghin, ed. Non-Tariff Measures with Market Imperfections: Trade & Welfare Implications in the Frontiers of Economics & Globalization series Emerald Press Volume 12 (2013): 73-98, doi: 10.1108/S1574-8715(2013)0000012018