Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina

This paper evaluates the effect on market shares and consumer surplus of the introduction of a Good Agricultural Practices (GAP)-labeled product in the frozen fried potatoes (FFP) industry. We first estimate a model of household demand in Mar del Plata, Argentina, using scanner data and demographic...

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Autores principales: Lacaze, María Victoria, González, Julia
Formato: Documento de conferencia publishedVersion
Lenguaje:Inglés
Publicado: 2012
Materias:
Buenas Prácticas Agrícolas
Alimentos Congelados
Papa
Disposición a Pagar
Acceso en línea:http://nulan.mdp.edu.ar/1604/
http://nulan.mdp.edu.ar/1604/1/01335.pdf
Aporte de:
Nulan - Fac.Cs.Económicas (UNMdP) de Universidad Nacional de Mar del Plata (UNMdP)
id I29-R1351604
record_format dspace
institution Universidad Nacional de Mar del Plata (UNMdP)
institution_str I-29
repository_str R-135
collection Nulan - Fac.Cs.Económicas (UNMdP)
language Inglés
orig_language_str_mv eng
topic Buenas Prácticas Agrícolas
Alimentos Congelados
Papa
Disposición a Pagar
spellingShingle Buenas Prácticas Agrícolas
Alimentos Congelados
Papa
Disposición a Pagar
Lacaze, María Victoria
González, Julia
Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
description This paper evaluates the effect on market shares and consumer surplus of the introduction of a Good Agricultural Practices (GAP)-labeled product in the frozen fried potatoes (FFP) industry. We first estimate a model of household demand in Mar del Plata, Argentina, using scanner data and demographic information. We find that higher income individuals are more concerned about health and nutrition, and that younger and lower-income consumers are more price-sensitive. Then we postulate that a properly GAP-labeled FFP is available in the market, and we assess its effect by using the estimated utility function and prior information about consumers' declared willingness to pay (WTP) for sustainably produced potatoes. We find that the older the individual, the greater the influence of the hypothetical introduction of the GAP-labeled product; the relationship is less conclusive in the case of income. Finally, we predict the results of a greater consumer surplus extraction by fixing a higher price for the new product, and we calculate the maximum increase in the marginal cost that the firm would be able to afford if farmers charge higher prices for GAP fresh potatoes.
format Documento de conferencia
Documento de conferencia
publishedVersion
author Lacaze, María Victoria
González, Julia
author_facet Lacaze, María Victoria
González, Julia
author_sort Lacaze, María Victoria
title Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
title_short Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
title_full Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
title_fullStr Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
title_full_unstemmed Implementation of a GAP label in a differentiated-product industry: a welfare evaluation with a random coefficients model for Mar del Plata, Argentina
title_sort implementation of a gap label in a differentiated-product industry: a welfare evaluation with a random coefficients model for mar del plata, argentina
publishDate 2012
url http://nulan.mdp.edu.ar/1604/
http://nulan.mdp.edu.ar/1604/1/01335.pdf
work_keys_str_mv AT lacazemariavictoria implementationofagaplabelinadifferentiatedproductindustryawelfareevaluationwitharandomcoefficientsmodelformardelplataargentina
AT gonzalezjulia implementationofagaplabelinadifferentiatedproductindustryawelfareevaluationwitharandomcoefficientsmodelformardelplataargentina
bdutipo_str Repositorios
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