Excise Taxes and Commodity Promotion: A Diagrammatic Motivation
Abstract
This note shows how the solution to the promotion problem—the problem of locating the optimal level of advertising in a downstream market—can be motivated simply, diagrammatically, and without the need to resort to complicated mathematical arguments. The optimality condition is for the level of the farm price to remain invariant to marginal adjustments in the program.Download Info
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Article provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 16 (1998)
Issue (Month): 2 ()
Pages:
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Postal: 301 Conner Hall, University of Georgia, Athens, GA 30602-7509
Web page: http://www.agecon.uga.edu/~jab/
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Keywords: Commodity promotion; Excise taxes; Optimality; Agribusiness; Marketing;References
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- Holloway, Garth J., 2000. "Excise Taxes And Commodity Promotion: Bayesian Retrieval Of The Optimum," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2).
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