The effect of the 1971 advertising ban on behavior in the cigarette industry

Craig A Gallet

Managerial and Decision Economics, 1999, vol. 20, issue 6, pages 299-303

Abstract: The 1971 ban on TV and radio advertising of cigarettes offers a unique opportunity to uncover the industry response to a change in the mix of advertising. Following the ban, advertising expenditures were shifted away from TV and radio towards print media. Accounting for the impact of this event within a supply and demand framework, the empirical results show that advertising had an insignificant effect on demand during the pre- and post-1971 periods; however, advertising did stimulate competition in the industry prior to the 1971 ban. Copyright © 1999 John Wiley & Sons, Ltd.

Date: 1999
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