EconPapers    
Economics at your fingertips  
 

The Effect of Deceptive Advertising on Consumption of the Advertised Good and its Substitutes: The Case of Over-the-Counter Weight Loss Products

John Cawley (), Rosemary Avery () and Matthew Eisenberg ()
Additional contact information
Rosemary Avery: Cornell University
Matthew Eisenberg: Carnegie Mellon University

No 7247, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper is the first to estimate the impact of exposure to deceptive advertising on consumption of the advertised product and its substitutes. We study the market for over-the-counter (OTC) weight-loss products, a market in which deceptive advertising is rampant and products are generally ineffective with potentially serious side effects. We control for the targeting of ads using indicator variables for each unique magazine read and television show watched. Our estimates indicate that exposure to deceptive advertising is associated with a lower probability that women, and a higher probability that men, consume OTC weight loss products. We find evidence of spillovers; exposure to deceptive print ads is associated with a higher probability of dieting and exercising for both men and women. We also find evidence that better-educated individuals are more sophisticated consumers of advertising and use it to make more health-promoting decisions.

Keywords: advertising; weight loss; obesity; deception; information; drugs; health (search for similar items in EconPapers)
JEL-codes: I1 I18 M37 M38 D83 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2013-02
New Economics Papers: this item is included in nep-ind and nep-mkt
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp7247.pdf (application/pdf)

Related works:
Working Paper: The Effect of Deceptive Advertising on Consumption of the Advertised Good and its Substitutes: The Case of Over-the-Counter Weight Loss Products (2013) Downloads
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:iza:izadps:dp7247

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2020-05-28
Handle: RePEc:iza:izadps:dp7247