@article{Herrmann:97214,
      recid = {97214},
      author = {Herrmann, Roland and Anders, Sven M. and Thompson, Stanley  R.},
      title = {Übermäßige Werbung und Marktsegmentierung durch staatliche  Förderung der Regionalvermarktung: Eine theoretische  Analyse},
      journal = {German Journal of Agricultural Economics},
      address = {2005},
      number = {670-2016-45627},
      pages = {11},
      year = {2005},
      abstract = {The protection of the regional origin of foods is a major  part of the food-quality policy in the EU. It is the  objective of this article to analyze economic effects of  such policy instruments. Two different types of policy are  distinguished which are both designed to promote regional  products. First, generic promotion of a homogeneous  commodity at the national and/or regional level in the  spirit of NERLOVE and WAUGH is investigated. This  instrument aims at shifting the demand for the advertised  commodity outward. We derive theoretically that excessive  advertising does exist if several promotion activities at  different regional levels exist at one time. It would be  more cost-effective due to product substitutability to move  from separate strategies at the level of states to a  coordinated uniform generic promotion. Secondly, there is  support in the EU for regional-origin labels which combine  quality assurance with the regional label. Product  heterogeneity arises here when regional products reach  above-average quality and prices increase. A segmented  market model is utilized to show that the price bonus is  affected by the magnitude of promotion expenditures, by own  – and cross-price advertising elasticities on the markets  and by marginal costs of program participation.},
      url = {http://ageconsearch.umn.edu/record/97214},
      doi = {https://doi.org/10.22004/ag.econ.97214},
}