Abstract
Many quality signals—both private and public—have been used to foster the development of food quality in the agro-food markets: mainly brands and common certified labels. Previous research has typically focused on either brand or certified label efficiency independently, while in many instances both signals coexist. Agricultural products that pair brand names and certified labels—such as indications of origin—are indeed common: e.g., Roquefort cheese, Scotch whiskeys, and most of the French wines. The objective of our paper is to take into account this coexistence by empirically analyzing the complementarity and/or substitutability that may exist between labels and brands. To do so, we estimate different models of adoption and an original multinomial probit model of complementarity that we test on a database of the quality-signaling strategies from 993 small French cooperatives. Our main result shows that there is a clear interaction effect between brand and certified label signal strategies, but it is a substitution effect rather than a complementary one.
Keywords
Complementarity; Quality signals; Multinomial probit;
JEL codes
- C25: Discrete Regression and Qualitative Choice Models • Discrete Regressors • Proportions
- L15: Information and Product Quality • Standardization and Compatibility
- Q12: Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13: Agricultural Markets and Marketing • Cooperatives • Agribusiness
Replaces
M’hand Fares, Saqlain Raza, and Alban Thomas, “Is there complementarity between labels and brands? Evidence from small French co-operatives”, TSE Working Paper, n. 18-895, February 2018.
Reference
M’hand Fares, Saqlain Raza, and Alban Thomas, “Is there complementarity between labels and brands? Evidence from small French co-operatives”, Review of Industrial Organization, vol. 53, n. 2, September 2018, pp. 367–395.
See also
Published in
Review of Industrial Organization, vol. 53, n. 2, September 2018, pp. 367–395