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Advertising Restrictions and Concentration: The Case of Malt Beverages

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Author Info
Sass, Tim R
Saurman, David S

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Abstract

The relationship between state-imposed advertising restrictions and state-level market concentration in the malt beverage industry is examined. The authors find that the presence of proscriptions on price advertising significantly increases market concentration at the state level, both absolutely and relative to a measure of national concentration. The evidence also indicates that banning local nonprice advertising in addition to price advertising yields no marginal significant change in either measure of state-level concentration. Analysis of individual brewers' market shares suggests that large national brewers gain at the expense of smaller brewers when price advertising is restricted. Copyright 1995 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 1 (February)
Pages: 66-81
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Handle: RePEc:tpr:restat:v:77:y:1995:i:1:p:66-81

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Web page: http://mitpress.mit.edu/journals/

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  1. David Paton, 1998. "Who A dvertises Prices? A Firm Level Study Based on Survey Data," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 5(1), pages 57-75, February. [Downloadable!] (restricted)
  2. Ulrich Doraszelski & Sarit Markovich, 2004. "Advertising Dynamics and Competitive Advantage," Computing in Economics and Finance 2004 61, Society for Computational Economics. [Downloadable!]
  3. C. Robert Clark, 2003. "Advertising Restrictions and Competition in the Children's Breakfast Cereal Industry / Restrictions et compétition publicitaire dans l’industrie des céréales pour enfants," CIRANO Working Papers 2003s-30, CIRANO. [Downloadable!]
  4. Nelson, Jon P., 2001. "Advertising Bans, Monopoly, and Alcohol Demand: Testing for Substitution Effects Using Panel Data," Working Papers 1-01-1, Pennsylvania State University, Department of Economics. [Downloadable!]
  5. Jon Nelson, 2003. "Advertising Bans, Monopoly, and Alcohol Demand: Testing for Substitution Effects using State Panel Data," Review of Industrial Organization, Springer, vol. 22(1), pages 1-25, February. [Downloadable!] (restricted)
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