An economic analysis of generic egg advertising in California, 1985-1995

Todd Schmit, J. Carlos Reberte and Harry Kaiser
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J. Carlos Reberte: Department of Agricultural, Resource, and Managerial Economics at Cornell University, Postal: Department of Agricultural, Resource, and Managerial Economics at Cornell University

Agribusiness, 1997, vol. 13, issue 4, 365-373

Abstract: A supply and demand econometric model of the California egg industry was estimated to evaluate the impact of generic egg advertising on producer prices and returns from 1985 to 1995. Econometric estimation indicated advertising had a positive impact on producer prices and net profits. The model was simulated with existing advertising expenditure levels, and with expenditures 1% higher than actual levels. A 1% increase in advertising expenditures resulted in an average 0.13% increase in producer prices and a marginal rate of return to advertising of 6.9. In other words, each additional dollar spent on advertising generated $6.90 in producers' profits. © 1997 John Wiley & Sons, Inc.

Date: 1997
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Related works:
Working Paper: An Economic Analysis of Generic Egg Advertising in California, 1985-1995 (1996)
Working Paper: An Economic Analysis of Generic Egg Advertising in California, 1985-1995 (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:13:y:1997:i:4:p:365-373

DOI: 10.1002/(SICI)1520-6297(199707/08)13:4<365::AID-AGR2>3.0.CO;2-X

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