Media substitution and economies of scale in advertising

Seldon, Barry J.; Jewell, R. Todd; O’Brien, Daniel M.

doi:10.1016/s0167-7187(99)00010-7

Cited by 39 publications

(27 citation statements)

References 32 publications

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“…It should be noted however, that there are some empirical studies showing little or no evidence of substantial returns to scale in advertisement (see for exampleArnodt andSimon 1983 andSeldon et al 2000). 14 See for exampleCannon et al (2002) andDube et al (2005).15 For notational simplicity we drop the time variable t.…”

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confidence: 99%

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes

Sartzetakis

Xepapadeas

Petrakis

2011

Environ Resource Econ

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This paper examines, within a dynamic framework, the role of information provision as a policy instrument to supplement environmental taxation. Several products are responsible for health as well as environmental damages. Many consumers do not possess the required information to optimally substitute away from these products. However, as the stock of information regarding the negative effects of these products builds up, an increasing fraction of consumers behaves optimally. The government uses two policy instruments, environmental taxation and information provision. We show that as the accumulated stock of information increases, the optimal tax rate declines over time. Information provision can shift market demand towards environmentally friendly goods over time, and thus reduce the required level of the tax rate. Our results provide strong evidence in support of information campaigns as a policy instrument to supplement traditional environmental policies.

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confidence: 99%

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes

Sartzetakis

Xepapadeas

Petrakis

2011

Environ Resource Econ

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“…We consider a technology with both components, as in Bresnaham (1984), Seldon et al (2000), Färe et al (2004), andVardanyan and. These studies assumed that production and marketing technologies are separable, producing the following full (production and marketing) cost function:…”

Section: Production and Marketing Technologymentioning

confidence: 99%

The effect of marketing regulations on efficiency: LeChatelier versus coordination effects

Iwasaki

Tremblay

2009

J Prod Anal

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“…To distinguish output that is produced from output that is marketed and sold to consumers, we specify them as production output (y P ) and sales output (y M ). Since firms generally use different inputs to produce and market their products and since production and marketing activities occur at different times, it is natural to follow Bresnahan (1984), Seldon et al (2000), and by assuming that the production and marketing components of costs are separable. This produces the full cost function:…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The measurement of marketing efficiency in the presence of spillovers: theory and evidence

Vardanyan

Tremblay

2006

Manage Decis Econ

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We develop a model of marketing efficiency based on a directional distance function that allows for marketing spillovers. A parametric model is used to test for spillovers from rival marketing and from a firm's marketing activity of its other related products. We then show how this information can be incorporated into a non-parametric model and used to estimate marketing inefficiency. We apply brand level data from the US brewing industry to the non-parametric model to determine the effectiveness of television, radio, and print advertising. We find that advertising spillovers are important in brewing and show that efficiency estimates are inaccurate when spillover effects are ignored. Our results also suggest that marketing efficiency may be an important component to firm success in brewing, a result that may apply to other consumer goods industries. Copyright © 2006 John Wiley & Sons, Ltd.

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Media substitution and economies of scale in advertising

Cited by 39 publications

References 32 publications

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes

The Role of Information Provision as a Policy Instrument to Supplement Environmental Taxes

The effect of marketing regulations on efficiency: LeChatelier versus coordination effects

The measurement of marketing efficiency in the presence of spillovers: theory and evidence

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