Dual quality food: A negative social externality or a competitiveness opportunity?

Abstract

In recent times, consumers and politicians from Central and Eastern Europe complain that some food products sold in their regions are of lower quality and less healthy if compared to those sold under the same brands in Western Europe. This situation, that concerns exclusively food produced and sold under even well-known multinational brands, is brought back by many food Multi-National Companies to the necessity to adapt their products to local tastes and gastronomic traditions. Many tests and studies carried out at European level prove poorer-quality products offered by Multi-National Companies to Central and Eastern Europe consumers even if with the same packaging and prices (or even more expensive) of Western countries. This is a very novel issue, and to the best of our knowledge, there is not any scientific paper yet dealing with this issue. Therefore, the aim of the study is to add new knowledge to this field and to shed light on the multiple aspects linked to dual quality food. The analysis, essentially theoretical, has pointed out that in addition to the traditional problems of market failures, there can be positive implications in terms of opportunities of competitiveness for multinational food companies.

Keywords

• asymmetric information as source of competitiveness
• central and eastern europe countries
• dysfunctional single market food of different qualities
• food multi-national companies adaptation strategies to local tastes
• market failure