Measuring the Benefits to Advertising under Monopolistic Competition
AbstractThis 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.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 37 (2012)
Issue (Month): 1 (April)
advertising; benefit-cost analysis; industrial organization; monopolistic competition; agricultural marketing; Agricultural Finance; Financial Economics; Marketing;
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