2011
DOI: 10.1093/erae/jbr053
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Quality certification by geographical indications, trademarks and firm reputation

Abstract: We study firm reputation as a mechanism to assure product quality in perfectly competitive markets in a context in which both certification and trademarks are available. Shapiro's (1983) model of reputation is extended to reflect both collective and firm-specific reputations, and this framework is used to study certification and trademarks for food products with a regional identity, known as geographical indications (GIs). Our model yields two primary results. First, in markets with asymmetric information and … Show more

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Cited by 105 publications
(94 citation statements)
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“…Reasons for which consumers consider valuable labels are that they inform consumers that the expected quality of the product is provided and they assure the degree of quality and thus reduce the risk connected to the purchase decision (Menapace et al, 2009). By reaching conditions for successful differentiation, and maintaining the image among consumers and preventing imitations of the product, and also owing producers rights, expenses of production can be justified and profit can be achieved (Bramley, 2009).…”
Section: Introductionmentioning
confidence: 99%
“…Reasons for which consumers consider valuable labels are that they inform consumers that the expected quality of the product is provided and they assure the degree of quality and thus reduce the risk connected to the purchase decision (Menapace et al, 2009). By reaching conditions for successful differentiation, and maintaining the image among consumers and preventing imitations of the product, and also owing producers rights, expenses of production can be justified and profit can be achieved (Bramley, 2009).…”
Section: Introductionmentioning
confidence: 99%
“…7 All the producers based in the area are entitled to sell their product with the name of the place of origin and, thus, they share the reputation that is a CPR and also depends on how the PDO/PGI is managed (Menapace and Moschini 2012). Stakeholders participating in the PDO/PGI are farmers, processors, firms in charge of the aging process (as it may be the case in the cheese and cured meet industries), and those specialized in the packaging.…”
Section: Supply Chains For Geographical Indicationsmentioning
confidence: 99%
“…As noted by others (e.g., Menapace and Moschini, 2011), GI names can be thought of as collective trademarks and, as noted earlier, the economic value of trademarks is rooted in their ability to improve consumer information. To investigate what we perceive as the critical information issues in this setting, GI promotion is modeled as "informative advertising," following one of the main strands of economic analysis of firms' promotion activities (Bagwell, 2007).…”
Section: Introduction�mentioning
confidence: 79%