Excise Taxes and Commodity Promotion: A Diagrammatic Motivation

Garth J. Holloway

Journal of Agribusiness, 1998, vol. 16, issue 2, 6

Abstract: This note shows how the solution to the promotion problem—the problem of locating the optimal level of advertising in a downstream market—can be motivated simply, diagrammatically, and without the need to resort to complicated mathematical arguments. The optimality condition is for the level of the farm price to remain invariant to marginal adjustments in the program.

Keywords: Agribusiness; Marketing (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:90444

DOI: 10.22004/ag.econ.90444

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