Advertising can rotate the demand curve if it changes the dispersion of consumers valuations. We provide an elasticity form measure of the advertising-induced demand curve rotation in five demand models and test for its presence in the U.S. non-alcoholic beverage market. The AIDS model reveals...

Building on earlier work by Cramer, this paper tests for price-advertising interaction effects in the U.S. non-alcoholic beverage market. Full and restricted specifications of the Rotterdam model are tested along with compensated and first difference double-log models using annual time-series...