Measuring the Benefits to Advertising under Monopolistic Competition

Michael Boland, John Crespi, Jena Silva and Tian Xia

Journal of Agricultural and Resource Economics, 2012, vol. 37, issue 01, 12

Abstract: This paper determines the benefits and costs of firm-level advertising in a monopolistically competitive industry. The model is useful in an environment in which firm-level costs may be absent or imprecise. The empirical example uses data on the advertising for a new line of prune snacks by Sunsweet Growers between 2008 and 2010, revealing average benefit-cost estimates from $1.26 to $4.35 for every dollar allocated to the new product line.

Keywords: Agricultural Finance; Financial Economics; Marketing (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:122308

DOI: 10.22004/ag.econ.122308

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