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The effect of the 1971 advertising ban on behavior in the cigarette industry

โœ Scribed by Craig A. Gallet

Publisher
John Wiley and Sons
Year
1999
Tongue
English
Weight
60 KB
Volume
20
Category
Article
ISSN
0143-6570

No coin nor oath required. For personal study only.

โœฆ Synopsis

The 1971 ban on TV and radio advertising of cigarettes offers a unique opportunity to uncover the industry response to a change in the mix of advertising. Following the ban, advertising expenditures were shifted away from TV and radio towards print media. Accounting for the impact of this event within a supply and demand framework, the empirical results show that advertising had an insignificant effect on demand during the preand post-1971 periods; however, advertising did stimulate competition in the industry prior to the 1971 ban.

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