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

DOI: 10.22004/ag.econ.122308

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