Skip to main content
Article
Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications
American Journal of Agricultural Economics
  • Sergio H Lence, Iowa State University
  • Stephan Marette, Institut National de la Recherche Agronomique
  • Dermot J. Hayes, Iowa State University
  • William Foster, Universidad Cat ´olica in Santiago
Document Type
Article
Publication Version
Submitted Manuscript
Publication Date
1-1-2007
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.

Citation Information
Sergio H Lence, Stephan Marette, Dermot J. Hayes and William Foster. "Collective Marketing Arrangements for Geographically Differentiated Agricultural Products: Welfare Impacts and Policy Implications" American Journal of Agricultural Economics Vol. 89 Iss. 4 (2007) p. 947 - 963
Available at: http://works.bepress.com/dermot_hayes/162/