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Article
Quality certification by geographical indications, trademarks and firm reputation
Economics Working Papers (2002–2016)
  • Luisa Menapace, Iowa State University
  • GianCarlo Moschini, Iowa State University
Document Type
Working Paper
Publication Date
6-8-2010
Working Paper Number
WP #09024, November 2009 revised June 2010; Old working paper #13126
Abstract
We develop a reputation model to study the concurrent use of trademarks and certification for food products with a regional identity, known as geographical indications (GIs). The model extends Shapiro’s (1983) approach to modeling reputation to a situation in which two technologies for the production of quality are available, one of which is available only in the GI region and has a cost advantage for the production of higher quality levels. In this setting, trademarks capture firm-specific reputations whereas GI certification captures a notion of collective reputation. The model shows that GI certification improves the ability of reputation to operate as a mechanism for assuring quality when it is linked to some inherent attributes of a particular production area. We discuss some welfare implications of introducing GI certification and show that an EU-style sui generis GI certification is preferable to the US-style approach based on certification marks.
Disciplines
File Format
application/pdf
Length
35 pages
File Function
This version: June 2010 (First draft: November 2009)
Citation Information
Luisa Menapace and GianCarlo Moschini. "Quality certification by geographical indications, trademarks and firm reputation" (2010)
Available at: http://works.bepress.com/giancarlo-moschini/60/