How to Promote Quality Perception in Wine Markets: Brand Advertising or Geographical Indication?
研究葡萄酒生产者在品牌广告与地理标志之间的选择,以及是否投入质量改进努力,发现选择努力时生产者更依赖品牌广告建立声誉,地理标志虽分担成本但不足以激励质量提升。
In the context of the wine industry, we investigate producers' choice between geographical indications and brand advertising to convey information to consumers. Producers also decide whether or not to select an effort level for improving the quality of their products. We show that if this effort level is selected, a producer will prefer to rely on brand advertising for promoting its products and setting up its own reputation. Despite allowing the cost of promotion to be shared, a geographical indication does not sufficiently reward the effort to improve quality. Finally, the selection of both instruments by producers is examined.