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@article{ Herrmann2009, title = {Markets Segmented by Regional-Origin Labelling with Quality Control}, author = {Herrmann, Roland and Anders, Sven and Thompson, Stanley R.}, journal = {Applied Economics}, number = {3}, pages = {311-321}, volume = {41}, year = {2009}, doi = {https://doi.org/10.1080/00036840601007237}, urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-240475}, abstract = {Abstract It is the objective of this paper to provide a methodological framework for the analysis of regional-marketing programs which include regional-origin labelling as well as quality assurance and control. Such programs are increasingly introduced in Europe and other parts of the world as a means against quality uncertainty in globalized markets. An equilibrium–displacement model is developed for a segmented market with differential qualities that can be utilized for a broad variety of marketing programs. It is applied to one selected European case, i.e. "Gepruefte Qualitaet – Bayern". It is shown that the price impacts on high-quality and low-quality segments depend crucially on substitutive relationships between the markets and the advertising elasticities. Welfare implications for producers in a program depend strongly on advertising elasticities, too, but also on the costs of participation including quality control and on the co-financing mechanism between government and producers.}, }