Agricultural Market Structure, Generic Advertising, and Welfare
AbstractThis analysis begins with a definition and discussion of productive advertising. Then, following Dixit and Norman, persuasive advertising is used to study the welfare effects of generic advertising by marketing orders. The study first examines horizontal competition when the competing advertiser is a monopoly, and results show that the socially optimal level of advertising for a competitive marketing order is positive only if advertising raises monopoly output. Next, advertising choices of a marketing order which sells its output to a monopolistic distributor are considered. If the distributor is a monopolist, then marketing order advertising raises welfare. This finding is in marked contrast to the results for the horizontal case studied by Dixit and Norman.
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Bibliographic InfoArticle provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.
Volume (Year): 28 (2003)
Issue (Month): 02 (August)
advertising; market structure; welfare; Marketing;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Tribl, Christoph & Salhofer, Klaus, 2005. "Promoting Organic Food: Information Policy Versus Production Subsidy," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24653, European Association of Agricultural Economists.
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