Title

Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications

Campus Units

Economics, Finance, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2007

Journal or Book Title

American Journal of Agricultural Economics

Volume

89

Issue

4

First Page or Article ID Number

947

Last Page

963

DOI

10.1111/j.1467-8276.2007.01036.x

Abstract

We examine the incentives of atomistic producers to differentiate and collectively market products. We analyze market and welfare effects of alternative producer organizations, discuss circumstances under which they will evolve, and describe implications for the ongoing debate between the EU and the United States. As fixed costs of development and marketing increase and the anticipated market size falls, it becomes essential to increase the producer organization’s ability to control supply to cover the fixed costs associated with the introduction of differentiated products. Counterintuitively, stronger property right protection for producer organizations may enhance welfare even after a differentiated product has been developed.

Comments

This is a working paper of an article from American Journal of Agricultural Economics, 2007; 89(4); 947-963. DOI: 10.1111/j.1467-8276.2007.01036.x.