The Political Economy of Geographical Indications

Koen Deconinck, Johan F. M. Swinnen
2014 Social Science Research Network  
In this article we study the political process that governs the creation and size of new Geographical Indications (GIs). Producers can choose to apply for a GI and subsequently go through a bargaining process with the government. We derive the optimal GI area from the point of view of consumers, producers, social welfare, and the government; and we show how bargaining leads to a GI size in between the applicant's optimum and the government's optimum. Under the assumption that the non-GI good is
more » ... a commodity, any GI implemented through the political process is welfare-enhancing, but not all welfareenhancing GIs will be proposed by producers. The authors thank
doi:10.2139/ssrn.2530427 fatcat:tngzfuto75bu7i6vvxp4l57u64