Optimal investment in generic advertising and research: The case of the Canadian supply-managed egg market
Cooperative producer organizations face the choice of investing producer dollars in a number of ways including basic research and advertising. An empirical model is specified for the Canadian supply-managed egg market to determine whether producers should invest in research, advertising, or both. Results suggest that without financial restrictions producers should invest more in advertising than they currently do and also invest significantly in basic research. For any commodity, the results will be dependent on price elasticities of supply and demand as well as measured responses to advertising and research.
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Volume (Year): 10 (1994)
Issue (Month): 2 ()
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- A. Aykac & M. Corstjens & D. Gautschi & I. Horowitz, 1989. "Estimation Uncertainty and Optimal Advertising Decisions," Management Science, INFORMS, vol. 35(1), pages 42-50, January.
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