COMPETITION AND THE CIGARETTE TV ADVERTISING BAN

E. Woodrow Eckard

90 citations0/0 files storedEconomic Inquiry

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Merger and Competition Analysis Consumer Market Behavior and Pricing American History and Culture

Abstract

The 1970 ban on television advertising for cigarettes constitutes a quasi‐experiment allowing the effect of advertising on competition to be evaluated. Assuming the ban reduced the efficacy of industry advertising, an analysis of various proxies for competition before and after the ban enables one to deduce whether advertising promotes or limits competition among cigarette firms. The results indicate that in this case the restriction of advertising reduced competition.

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1971Industrial Market Structure and Economic Performance.1956Barriers to New Competition 1978Entry Deterrence in the Ready-to-Eat Breakfast Cereal Industry 1971Industrial Market Structure and Economic Performance 1967Advertising Market Structure and Performance 1964Advertising and Competition 1972The Effect of Advertising on the Price of Eyeglasses 1979The effect of advertising on competition: a survey

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2005Direct to consumer advertising in pharmaceutical markets

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