Collective Reputation and Quality
TLDR
In this article, the authors show that for an experience good without firm traceability, individual firms have the incentive to choose quality levels that are sub-optimal for the group.Abstract:
Firms who sell regional or specialty products often share a collective reputation based on aggregate quality. Collective reputation can be approached as a dynamic common property resource problem. We show that for an experience good without firm traceability, individual firms have the incentive to choose quality levels that are sub-optimal for the group. These results support minimum quality standards. Trigger strategies are analyzed as an alternative solution to this problem. Finally, the implications of these results are discussed as they relate to the case study of Washington apples. Specialty, regional, authentic, and local food products have become a more important part of consumer purchases in recent years. Firms have responded by marketing food products that come from specific geographic areas. This trend in consumers’ preferences has led the European Union to introduce protected designations of origin labels and protected geographical identification labels, which provide protection of food names on a geographical or traditional basis, ranging from Parmesan cheese to such lesser-known items such as Galician veal. In the United States, there are popular state products that carry labels, such as Washington apples, Idaho potatoes,read more
Citations
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A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability
TL;DR: For example, this article found that consumers value certification of USDA food safety inspection more than any of the other choice set attributes, including country-of-origin labeling, traceability and tenderness.
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Consumers’ Appreciation of Regional Certification Labels: A Pan‐European Study
TL;DR: In this article, the authors investigated consumers' image of regional certification labels and proposed a model that relates this image to consumers' willingness to buy and pay for protected regional products, based on Regulation No. 2081/92 that was introduced by the EEC allowing European SMEs to protect their regional products and market their products with a protected designation-of-origin (PDO) label.
Posted Content
Place-Based Marketing and Regional Branding Strategy Perspectives in the California Wine Industry
Johan Bruwer,Raymond L. Johnson +1 more
TL;DR: In this paper, the authors explored different levels of place-based marketing in the form of region of origin strategies used by wineries in their branding efforts and found that the addition of regional information on a wine label increased consumer confidence in the quality of the product.
Journal ArticleDOI
Traceability, Liability, and Incentives for Food Safety and Quality
TL;DR: In this paper, the authors model a stylized marketing chain composed of farms, marketers, and consumers and show that food safety declines with the number of farms and marketers and imperfect traceability from consumers to marketers dampens liability incentives to supply safer food by farms.
Journal ArticleDOI
Place‐based marketing and regional branding strategy perspectives in the California wine industry
Johan Bruwer,Raymond L. Johnson +1 more
TL;DR: In this paper, the authors explore different levels of place-based marketing in the form of region of origin strategies used by wineries in their branding efforts, and obtain insights into wine consumer dynamics such as product involvement level, consumption frequency and differences between segments on the basis of gender and age from a regional branding perspective.
References
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Book
The Theory of Industrial Organization
TL;DR: The Theory of Industrial Organization as discussed by the authors is the first primary text to treat the new industrial organization at the advanced-undergraduate and graduate level Rigorously analytical and filled with exercises coded to indicate level of difficulty, it provides a unified and modern treatment of the field with accessible models that are simplified to highlight robust economic ideas.
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Information and Consumer Behavior
TL;DR: In this article, the authors argue that consumers lack full information about the prices of goods, but their information is probably poorer about the quality variation of products simply because the latter information is more difficult to obtain.
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Free Competition and the Optimal Amount of Fraud
Michael R. Darby,Edi Karni +1 more
TL;DR: In this paper, the authors explore the reasons for and determinants of the provision by a firm of false information to a consumer so as to induce purchases which would not be made if the consumer possessed full information about the qualities of his purchase.
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Reputation and imperfect information
David M. Kreps,Robert Wilson +1 more
TL;DR: The authors reexamine Selten's model, adding to it a small amount of imperfect (or incomplete) information about players' payoffs, and find that this addition is sufficient to give rise to the reputation effect that one intuitively expects.
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Premiums for High Quality Products as Returns to Reputations
TL;DR: In this article, an equilibrium price-quality schedule for markets in which buyers cannot observe product quality prior to purchase is derived, and the effects of improved consumer information and of a minimum quality standard on the equilibrium price quality schedule are studied.