The impact of advertising regulation on industry: the cigarette advertising ban of 1971.

This article studies the impact of the 1971 TV/radio advertising ban on the cigarette industry. Data indicate that industry advertising spending decreased sharply immediately following the ban but recovered and actually exceeded the preban level within five years. A dynamic oligopoly model of advert...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 2; pp. 215 - 249
Autor principal: Qi, Shi
Formato: Artículo
Publicado: Wiley-Blackwell Summer2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The impact of advertising regulation on industry: the cigarette advertising ban of 1971.
      aug:
        au: Qi, Shi
        affil: Florida State University
      su:
        Cigarette industry
        Banner advertisements
        Cigarette advertising
        Equilibrium
        Advertising rates
      sug:
        subj:
          Tobacco product manufacturing
          All other miscellaneous store retailers (except beer and wine-making supplies stores)
          Tobacco Stores
          Tobacco Manufacturing
          Tobacco and Tobacco Product Merchant Wholesalers
          Cigarette and tobacco product merchant wholesalers
          Outdoor Advertising
          Cigarette industry
          Banner advertisements
          Cigarette advertising
          Equilibrium
          Advertising rates
      ab: This article studies the impact of the 1971 TV/radio advertising ban on the cigarette industry. Data indicate that industry advertising spending decreased sharply immediately following the ban but recovered and actually exceeded the preban level within five years. A dynamic oligopoly model of advertising is developed to incorporate two potential explanations. The estimated model fully accounts for the puzzling trend, with 74% of the postban advertising spending increase explained by industry dynamics, and 26% explained by learning. Furthermore, this article uses the new concept of nonstationary oblivious equilibrium to handle intractable state space and accelerate equilibrium computation.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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