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Regulating advertisements: the case of smoking cessation products

Author

Listed:
  • Rosemary Avery

    ()

  • Donald Kenkel

    ()

  • Dean Lillard

    ()

  • Alan Mathios

    ()

Abstract

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

Suggested Citation

  • Rosemary Avery & Donald Kenkel & Dean Lillard & Alan Mathios, 2007. "Regulating advertisements: the case of smoking cessation products," Journal of Regulatory Economics, Springer, vol. 31(2), pages 185-208, April.
  • Handle: RePEc:kap:regeco:v:31:y:2007:i:2:p:185-208
    DOI: 10.1007/s11149-006-9021-9
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    References listed on IDEAS

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    Cited by:

    1. Andrew Stivers, 2009. "Regulating Market Language: Market Failure in Descriptive Signals," Journal of Consumer Policy, Springer, vol. 32(1), pages 23-41, March.
    2. Toshiaki Iizuka & Ginger Zhe Jin, 2005. "Drug Advertising and Health Habit," NBER Working Papers 11770, National Bureau of Economic Research, Inc.
    3. Rosemary Avery & Donald Kenkel & Dean R. Lillard & Alan Mathios, 2007. "Private Profits and Public Health: Does Advertising of Smoking Cessation Products Encourage Smokers to Quit?," Journal of Political Economy, University of Chicago Press, vol. 115, pages 447-481.
    4. Rosemary Avery & Donald Kenkel & Dean R. Lillard & Alan Mathios, 2006. "Private Profits and Public Health: Does Advertising Smoking Cessation Products Encourage Smokers to Quit?," NBER Working Papers 11938, National Bureau of Economic Research, Inc.
    5. Donald S. Kenkel & Maximilian D. Schmeiser & Carly Urban, 2014. "Is Smoking Inferior?: Evidence from Variation in the Earned Income Tax Credit," Journal of Human Resources, University of Wisconsin Press, vol. 49(4), pages 1094-1120.
    6. repec:eee:jhecon:v:55:y:2017:i:c:p:30-44 is not listed on IDEAS

    More about this item

    Keywords

    Smoking-Cessation; Regulation; Advertising; FDA; I12; L51; M37;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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