Buse’s concept of total response is extended to advertising effects. Results suggest that partial advertising elasticities overstate advertising’s ability to increase market demand. One implication is that advertising bans (e.g., for alcohol and tobacco) are apt to be less effective than...

The dominant pattern in U.S. non-alcoholic drink: consumption over the past 25 years has been a steady increase in per capita soft-drink: consumption, largely at the expense of coffee (and to a lesser extent) milk consumption. Our findings suggest that the major factor governing this pattern is...

This paper determines the impact of food industry market power on farmers' incentive to promote in a situation where funds for promotion are raised through a per-unit assessment on farm output and food industry technology is characterized by variable proportions. Specifically, building on...

Nerlove and Waugh's theory of cooperative (generic) advertising is extended to include tax shifting, cost sharing, and trade. Comparative-static analysis indicates that trade reduces the incentive to promote in the domestic market, and this is true whether the industry inquestion is a net...

The dominant trend in U.S. non-alcoholic consumption over the past two decades has been a steady increase in soft-drink consumption, largely at the expense of milk and coffee and tea consumption. Our analysis suggests that the primary factors affecting this is that the price, advertising, and...

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...