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2011•RePEc: Research Papers in EconomicsOpen access

The Economics of Geographical Indications: Welfare Implications

Ramona Tauber, Sven Anders, Corinne Langinier, Tauber, Ramona, Anders, Sven M., Langinier, Corinne

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Abstract

The debate over the “right way” of protecting geographical indicators (GIs) has resulted in a growing body of literature investigating the welfare effects of GI policies using economic modelling approaches. This paper presents a synthesis of a small yet growing number of analytical studies on GIs. We find that modelling results and related policy conclusions hinge on different assumptions regarding consumer preferences, quality differentiation and weights attributed to producer or consumer welfare measures. Inconclusive results regarding a pareto-optimal design of GI policy leave several unresolved issues to researchers and policy makers assigned with the welfare implications of GI-based market interventions.

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What this paper is about

The debate over the “right way” of protecting geographical indicators (GIs) has resulted in a growing body of literature investigating the welfare effects of GI policies using economic modelling approaches. This paper presents a synthesis of a small yet growing number of analytical studies on GIs. We find that modelling results and related policy conclusions hinge on different assumptions regarding consumer preferences, quality differentiation and weights attributed to producer or consumer welfare measures. Inconclusive results regarding a pareto-optimal design of GI policy leave several unresolved issues to researchers and policy makers assigned with the welfare implications of GI-based market interventions.

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Available abstract

The debate over the “right way” of protecting geographical indicators (GIs) has resulted in a growing body of literature investigating the welfare effects of GI policies using economic modelling approaches. This paper presents a synthesis of a small yet growing number of analytical studies on GIs. We find that modelling results and related policy conclusions hinge on different assumptions regarding consumer preferences, quality differentiation and weights attributed to producer or consumer welfare measures. Inconclusive results regarding a pareto-optimal design of GI policy leave several unresolved issues to researchers and policy makers assigned with the welfare implications of GI-based market interventions.

Key concepts: Welfare, Public economics, Economics, Pareto principle, Consumer welfare, Quality (philosophy), Psychological intervention, Market failure

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