Measuring the Benefits to Advertising under Monopolistic Competition

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.


Issue Date:
2012-04
Publication Type:
Journal article
PURL Identifier:
http://purl.umn.edu/122308
Published in:
Journal of Agricultural and Resource Economics, Volume 37, Number 1
Page range:
144-155
Total Pages:
12




 Record created 2017-04-01, last modified 2017-04-21

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