Excessive Advertising: An Empirical Analysis

Jeffry M. Netter

22 citations0/0 files storedJournal of Industrial Economics

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Consumer Market Behavior and Pricing Marketing and Advertising Strategies Merger and Competition Analysis

Abstract

Advertising can be used by a firm to provide consumers with information about its products. To the extent that advertising reduces search costs through the provision of low cost information it is socially beneficial. However, some economists have argued that advertising is frequently used in ways that are harmful to society. One such argument, that resource allocation is distorted by socially useless advertising, is considered theoretically and empirically in this paper.

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1971Industrial Market Structure and Economic Performance.1956Barriers to New Competition 1974Social Costs of Monopoly and Regulation 1976Econometric Measurement of the Duration of Advertising Effect on Sales 1978Advertising and Welfare 1964Advertising and Competition 1972The economics of advertising 1974Advertising and Market Power

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