A NOTE ON MEASURING RETURNS TO GENERIC ADVERTISING IN INTERRELATED MARKETS

Henry Kinnucan

Journal of Agricultural Economics, 1996, vol. 47, issue 1‐4, 261-267

Abstract: This note focuses on the theoretical relationship between price and generic advertising when supply is uncontrolled and markets are interrelated through consumer preferences. A key finding is that the mutatis mutandis relationship between own‐price and own‐advertising is indeterminate unless the structural elasticities pertaining to own‐price and own‐advertising effects are greater in absolute value than the corresponding cross elasticities. This implies, inter alia, that benefit‐cost analyses based on single‐equation models may overstate producer returns to generic advertising, a conclusion verified in the empirical application.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
https://doi.org/10.1111/j.1477-9552.1996.tb00690.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jageco:v:47:y:1996:i:1-4:p:261-267

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-857X

Access Statistics for this article

Journal of Agricultural Economics is currently edited by David Harvey

More articles in Journal of Agricultural Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().