Information asymmetry in the agri-food sector and territorial marks: The case of the olive oil Val di Mazara PDO

Abstract

This article analyzes the importance of information in the agri-food market, since the presence of information asymmetry favors market failure. This analysis ex-amines the information asymmetry in the agri-food market and its geographical brands, PDO and PGI, focusing on the Sicilian oil sector of the olive oil Val di Mazara PDO. A quality product has specific organoleptic characteristics that give it flavors, fragrances and various nutritional properties. To protect this, there are the brands that are essential to avoid that between sellers and consumers there is information asymmetry and consequently the failure of the market. In fact, through this analysis are examined the evolution of the reference legislation, consisting of the Paris Convention for the Protection of Industrial Property and Directive (EU) 2015/2436, which represent the result of long negotiations undertaken by the institutions of the European Union with the aim of modernizing the European system of trademark protection. Proceeding with the analysis examined the case of the olive oil Val di Mazara PDO. The legislator has created the PDO territorial brand which, however, is not used by farm. This situation determines a lack of valorization of the product and an impoverishment of the territory. The impact is also at the level of gastronomy, the olive oil of dubious quality are preferred over certified oil. In the present study the Val di Mazara PDO was analyzed. In particular, through the Economic Theory we have verified that the information asymmetry hinders the diffusion of the Val di Mazara PDO and determines the market failure and the lack of valorization of olive oil.