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Advertising, price, and welfare: evidence from the U.S. brewing industry.
Southern Economic Journal
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October 1, 1995|
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COPYRIGHT 1995 Southern Economic Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
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I. Introduction
The welfare effect of advertising has been a subject of controversy among economists for some time. One obvious concern is simply the cost of advertising. In 1990, for example, Americans spent $130.1 billion on advertising. To put this figure into perspective, this amounted to $523 per capita, 2.35 percent of gross national product, and roughly 80 percent of the national deficit.(1)
Much of the early debate regarding the social desirability of advertising stems from different preconceptions regarding its purpose [13; 14; 8; 49]. For example, ...
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