Quantity and quality effects of advertising: a demand system approach

Diansheng Dong (), Harry Kaiser and Øystein Myrland

Agricultural Economics, 2007, vol. 36, issue 3, 313-324

Abstract: Quantity and quality effects of advertising are investigated in this article. A censored demand system is estimated for fish, beef, pork, and other meats using Norwegian household data. In the demand model, generic fish advertising and meat advertising is introduced as demand shifters, and at the same time unit values are treated as endogenous. The unit values capture the quality of the commodities. Empirical findings show that advertising can have both quantity and quality effects on household demand.

Date: 2007
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