Article

What's in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names

Jianyu Yu, Zohra Bouamra-Mechemache et Angelo Zago

Résumé

Collective labels are widespread in food markets, either separated or nested with private brands; the latter known as nested names. We propose a model to explain the rationale of nested names, with collective labels being effective in reaching unaware consumers while individual brands help firms to reach aware consumers. We also incorporate the decision-making within the group of producers joining collective labels, taking into account their heterogeneity in providing quality. We show that nested names emerge when consumers become more aware of information on the label's quality and when producers become more heterogeneous. Welfare may decrease, however, when the group switches to nested names, because nested names may lead to lower quality incentives for the majority producers. The results also provide insights into the historical and recent trends in food industries, such as within-label differentiation and label fragmentation, and their welfare implications.

Mots-clés

nested names; individual brands; collective labels; consumers' awareness; producer heterogeneity; quality provision;

Codes JEL

  • D71: Social Choice • Clubs • Committees • Associations
  • D83: Search • Learning • Information and Knowledge • Communication • Belief
  • L15: Information and Product Quality • Standardization and Compatibility
  • L66: Food • Beverages • Cosmetics • Tobacco • Wine and Spirits
  • Q13: Agricultural Markets and Marketing • Cooperatives • Agribusiness

Remplace

Zohra Bouamra-Mechemache, Jianyu Yu et Angelo Zago, « What's in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names », TSE Working Paper, n° 17-866, novembre 2017.

Référence

Jianyu Yu, Zohra Bouamra-Mechemache et Angelo Zago, « What's in a Name? Information, Heterogeneity, and Quality in a Theory of Nested Names », American Journal of Agricultural Economics, vol. 100, n° 1, janvier 2018, p. 286–310.

Voir aussi

Publié dans

American Journal of Agricultural Economics, vol. 100, n° 1, janvier 2018, p. 286–310