Revisiting the Foundations of EU-Mandated Traceability: A Trademark Signalling Framework

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Are European Geographical Indications effective in the presence of a weak trademark mechanism and uneven application costs? I develop a multi-stage game of incomplete information to understand the impact of these forces on EU food quality standards. Under Decentralised Surveillance and pre-set charges, a social planner cannot reliably attribute trademarks to deserving producers and separate the market. While a Riley Outcome is unattainable, three equilibria survive the notion of sequential rationality. In showing that these outcomes are all suboptimal, I argue that EU regulators can improve the current application process by i) yearly reviewing the testing device and ii) replacing ex-ante with ex-post filing fees. Under its aegis, the WIPO could subsume both reformative proposals.

Francesca Chiaradia
Francesca Chiaradia
PhD Student in Economics

My research interests include information economics, law and economics, economics of innovation.