Beggar-Thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs
AbstractProfits from generic advertising by a producer group often come partly at the expense of producers of closely related commodities. The resulting tendency toward excessive advertising is exacerbated by check-off funding. To analyze this beggar-thy-neighbor behavior we compare a scenario where different producer groups cooperate and choose their advertising expenditures jointly to maximize the sum of profits across the groups, and a scenario where they optimize independently. In an illustrative example using 1998 data for U.S. beef and pork, the noncooperatively chosen expenditure on beef and pork advertising is more than three times the cooperative optimum. Copyright 2001, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 83 (2001)
Issue (Month): 4 ()
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Zheng, Yuqing & Kaiser, Harry M., 2008. "Advertising and U.S. Nonalcoholic Beverage Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(2), October.
- repec:ags:mareec:28093 is not listed on IDEAS
- Julian M. Alston & John W. Freebairn & Jennifer S. James, 2003. "Distributional issues in check-off funded programs," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 277-287.
- Cardon, James H. & Pope, Rulon D., 2003. "Agricultural Market Structure, Generic Advertising, and Welfare," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(02), August.
- Crespi, John M. & James, Jennifer S., 2007.
"Bargaining rationale for cooperative generic advertising,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 51(4), December.
- John M. Crespi & Jennifer S. James, 2007. "Bargaining rationale for cooperative generic advertising," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 445-457, December.
- Capacci, Sara & Mazzocchi, Mario, 2011. "Five-a-day, a price to pay: An evaluation of the UK program impact accounting for market forces," Journal of Health Economics, Elsevier, vol. 30(1), pages 87-98, January.
- Kinnucan, Henry W. & Myrland, Oystein, 2002. "Relationship Between Partial and Total Responses to Advertising with Application to U.S. Meats," Research Bulletins 122634, Cornell University, Department of Applied Economics and Management.
- repec:rdg:emxxdp:em-dp2009-05 is not listed on IDEAS
- Herrmann, Roland & Anders, Sven & Thompson, Stanley R., 2005. "ÃœbermÃ¤ÃŸige Werbung und Marktsegmentierung durch staatliche FÃ¶rderung der Regionalvermarktung: Eine theoretische Analyse," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(3).
- John M. Crespi & Stéphan Marette, 2003. "Are uniform assessments for generic advertising optimal if products are differentiated?," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 367-377.
- Gunderson, Michael A. & Lusk, Jayson L. & Norwood, F. Bailey, 2005. "Getting Something From Nothing: An Investigation of Beef Demand Expansion and Substitution in the Presence of Quality Heterogeneity," 2005 Annual meeting, July 24-27, Providence, RI 19465, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Hunnicutt, Lynn & Israelsen, L. Dwight, 2003. "Incentives to Advertise and Product Differentiation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(03), December.
- Rickard, Bradley J. & Liaukonyte, Jura & Kaiser, Harry M. & Richards, Timothy J., 2010. "Examining consumer response to commodity-specific and broad-based promotion programs for fruits and vegetables using experimental economics," Working Papers 126965, Cornell University, Department of Applied Economics and Management.
- Jeffrey Hyde & Brent Gloy, 2007. "Dynamic strategic responses among advertisers: the case of meat products," Economics Bulletin, AccessEcon, vol. 13(3), pages 1-14.
- Requena-Silvente, Francisco & Walker, James, 2007. "Investigating sales and advertising rivalry in the UK multipurpose vehicle market (1995-2002)," Journal of Economics and Business, Elsevier, vol. 59(2), pages 163-180.
- Metin Cakir & Joseph V. Balagtas, 2010. "Econometric evidence of cross-market effects of generic dairy advertising," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 83-99.
- Brenda L. Boetel & Donald J. Liu, 2003. "Evaluating the effect of generic advertising and food health information within a meat demand system," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 345-354.
- repec:ebl:ecbull:v:13:y:2007:i:3:p:1-14 is not listed on IDEAS
- Goddard, Ellen W. & Freebairn, John W. & Griffith, Garry R., 2003. "Issues in evaluating generic promotion in the food chain," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57871, Australian Agricultural and Resource Economics Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.