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Quality Certification through a Registered Designation of Origin: An Analytical Model

Par : Contributeur(s) : Type de matériel : TexteTexteLangue : français Détails de publication : 2003. Sujet(s) : Ressources en ligne : Abrégé : International competition on the wine market is characterised by a disparity of strategies applied by producers and wine-producing regions. We provide a theoretical analysis of the producers’ choice between the two main brand strategies: a private brand name and a brand carrying a public certification such as the French “Appellation d’Origine Contrôlée” (AOC). We show that the latter can be profitable by comparison with the private brand name strategy. However, such a system can lead to underinvestment in quality that can reduce consumer’s surplus.
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International competition on the wine market is characterised by a disparity of strategies applied by producers and wine-producing regions. We provide a theoretical analysis of the producers’ choice between the two main brand strategies: a private brand name and a brand carrying a public certification such as the French “Appellation d’Origine Contrôlée” (AOC). We show that the latter can be profitable by comparison with the private brand name strategy. However, such a system can lead to underinvestment in quality that can reduce consumer’s surplus.

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