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,...

Despite the growing importance of geographical indications (GI), relatively little attention has been devoted to studying the optimal size of a GI region, as well as how lobbying by interest groups may affect the actual size. We develop a political economy model of the size of geographical...