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The Political Economy of Truth-in-Advertising Regulation during the Progressive Era

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  • Zeynep K. Hansen
  • Marc T. Law

Abstract

This paper explores the origins and effects of truth-in-advertising regulation during the Progressive Era. Was advertising regulation adopted in response to rent seeking on the part of firms that sought to limit the availability of advertising as a competitive device, or was advertising regulation desired because it furnished a mechanism through which firms could improve the credibility of advertising? We find the available evidence to be more consistent with the latter hypothesis. (c) 2008 by The University of Chicago. All rights reserved.

Suggested Citation

  • Zeynep K. Hansen & Marc T. Law, 2008. "The Political Economy of Truth-in-Advertising Regulation during the Progressive Era," Journal of Law and Economics, University of Chicago Press, vol. 51(2), pages 251-269, May.
  • Handle: RePEc:ucp:jlawec:v:51:y:2008:i:2:p:251-269
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    References listed on IDEAS

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    Cited by:

    1. Hattori, Keisuke & Higashida, Keisaku, 2014. "Misleading advertising and minimum quality standards," Information Economics and Policy, Elsevier, vol. 28(C), pages 1-14.

    More about this item

    JEL classification:

    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • N41 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: Pre-1913
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-

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