Demand Spillovers, Combative Advertising, and Celebrity Endorsements

Craig L. Garthwaite

American Economic Journal: Applied Economics, 2014, vol. 6, issue 2, 76-104

Abstract: This paper studies the economic effects of endorsements. In the publishing sector, endorsements are found to be a business stealing form of advertising that raises title level sales without expanding the market size. If anything, the endorsements decrease aggregate adult fiction sales. This might be a result of the endorsed books being more difficult than those that otherwise would have been purchased. Economically meaningful sales increases are also found for nonendorsed titles written by endorsed authors. This spillover demand demonstrates the broad range of benefits of advertising for firms operating in a multiproduct brand setting.

JEL-codes: L82 M31 M37 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/app.6.2.76
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Citations: View citations in EconPapers (20)

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