Agricultural Market Structure, Generic Advertising, and Welfare
This analysis begins with a definition and discussion of productive advertising. Then, following Dixit and Norman, persuasive advertising is used to study the welfare effects of generic advertising by marketing orders. The study first examines horizontal competition when the competing advertiser is...
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Western Agricultural Economics Association
2003-08-01
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Online Access: | https://ageconsearch.umn.edu/record/31098 |
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doaj-c03b0e75a75f4d9f8abe91bb3c3e22322020-11-25T01:10:22ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852003-08-0128218520010.22004/ag.econ.3109831098Agricultural Market Structure, Generic Advertising, and WelfareJames H. CardonRulon D. PopeThis analysis begins with a definition and discussion of productive advertising. Then, following Dixit and Norman, persuasive advertising is used to study the welfare effects of generic advertising by marketing orders. The study first examines horizontal competition when the competing advertiser is a monopoly, and results show that the socially optimal level of advertising for a competitive marketing order is positive only if advertising raises monopoly output. Next, advertising choices of a marketing order which sells its output to a monopolistic distributor are considered. If the distributor is a monopolist, then marketing order advertising raises welfare. This finding is in marked contrast to the results for the horizontal case studied by Dixit and Norman.https://ageconsearch.umn.edu/record/31098advertisingmarket structurewelfare |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
James H. Cardon Rulon D. Pope |
spellingShingle |
James H. Cardon Rulon D. Pope Agricultural Market Structure, Generic Advertising, and Welfare Journal of Agricultural and Resource Economics advertising market structure welfare |
author_facet |
James H. Cardon Rulon D. Pope |
author_sort |
James H. Cardon |
title |
Agricultural Market Structure, Generic Advertising, and Welfare |
title_short |
Agricultural Market Structure, Generic Advertising, and Welfare |
title_full |
Agricultural Market Structure, Generic Advertising, and Welfare |
title_fullStr |
Agricultural Market Structure, Generic Advertising, and Welfare |
title_full_unstemmed |
Agricultural Market Structure, Generic Advertising, and Welfare |
title_sort |
agricultural market structure, generic advertising, and welfare |
publisher |
Western Agricultural Economics Association |
series |
Journal of Agricultural and Resource Economics |
issn |
1068-5502 2327-8285 |
publishDate |
2003-08-01 |
description |
This analysis begins with a definition and discussion of productive advertising. Then, following Dixit and Norman, persuasive advertising is used to study the welfare effects of generic advertising by marketing orders. The study first examines horizontal competition when the competing advertiser is a monopoly, and results show that the socially optimal level of advertising for a competitive marketing order is positive only if advertising raises monopoly output. Next, advertising choices of a marketing order which sells its output to a monopolistic distributor are considered. If the distributor is a monopolist, then marketing order advertising raises welfare. This finding is in marked contrast to the results for the horizontal case studied by Dixit and Norman. |
topic |
advertising market structure welfare |
url |
https://ageconsearch.umn.edu/record/31098 |
work_keys_str_mv |
AT jameshcardon agriculturalmarketstructuregenericadvertisingandwelfare AT rulondpope agriculturalmarketstructuregenericadvertisingandwelfare |
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