ADVERTISING TRADED GOODS

Nerlove and Waugh's theory of cooperative (generic) advertising is extended to include tax shifting, cost sharing, and trade. Comparative-static analysis indicates that trade reduces the incentive to promote in the domestic market, and this is true whether the industry inquestion is a net exporter or a net importer. The theory is applied to California egg advertising to demonstrate utility and to highlight the importance of including trade relationships in advertising benefit-cost studies.


Issue Date:
1998
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20965
Total Pages:
14
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-04-26

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