Beggar-thy-Neighbor Advertising: Theory and Application to Generic Commodity Promotion Programs

Alston, Julian M.; Freebairn, John

doi:10.2139/ssrn.231112

Cited by 18 publications

(1 citation statement)

References 54 publications

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“…Consequently, BOJA t is included to account for the potential interaction effects of brand advertising. The variable FJDA t , which represents advertising of other fruit juices and drinks, is included to account for potential “beggar thy neighbor” effects of advertising by substitute products (Alston, Freebairn, and James 2001).…”

Section: Methodsmentioning

confidence: 99%

The Ramifications of Nearly Going Dark: A Natural Experiment in the Case of U.S. Generic Orange Juice Advertising

Capps¹,

Bessler²,

Williams³

2016

Agric. Resour. Econom. Rev.

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Evaluations of generic advertising programs by commodity check-off programs involve analyses of counterfactual scenarios in which advertising and promotion expenditures are set to zero over the program's history. In actual practice, the counterfactual is rarely realized. We present a case in which such a natural experiment occurred when generic advertising and promotion expenditures for U.S. orange juice were cut nearly to zero. Using structural econometric and autoregression models, we estimate losses in consumption and sales revenue and examine the time required for the market for orange juice to recover from the check-off's strategy of going nearly dark.The extant literature is replete with studies of the effectiveness of generic advertising and promotion programs conducted by the already large and growing number of commodity "check-off" programs in the United States (e.

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Section: Methodsmentioning

confidence: 99%