Marketing barriers facing developing countries : essays on product differentiation, discrimination and brand naming in the market for clothing
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Based on a statistical discrimination approach, in Market distortions due to compulsory labelling of origin, it is argued that labelling improves the match between consumers and producers to the extent that country of origin is an indicator of quality, while labelling reduces the incentives for third world producers to improve their quality. By implementing several experiments, in Country of origin - a signal of product quality, it is found that the consumers have negative perceptions of products from developing countries, while price is used as the main screening device of product quality. Adopting a property rights perspective on the firm, in Property rights, investment in product differentiation and branding strategies in the market for clothing, several control regimes are introduced and compared in order to secure that the party which invests in differentiation is able to reap the profit of such (unverifiable) investments.