Regulating advertisements: the case of smoking cessation products
We investigate how direct-to-consumer advertising of smoking cessation products is affected by Food and Drug Administration regulations. Because of their effectiveness, these products could be the key to meeting public health goals to reduce smoking. Our study period covers the evolution of the market as products are introduced while some of the older products move from prescription to over-the-counter (OTC) status. The movement to OTC substantially reduces disclosure requirements and reduces costs to advertise. Our results show that OTC status increases the amount firms spend on advertising and increases the number and pages of magazine advertisements. Copyright Springer Science+Business Media, LLC 2007
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