publication . Article . Preprint . 2011

advertising expenditure and consumer prices

Ferdinand Rauch;
Open Access
  • Published: 01 Aug 2011 Journal: International Journal of Industrial Organization, volume 31, pages 331-341 (issn: 0167-7187, Copyright policy)
  • Publisher: Elsevier BV
This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and consumer prices across industries. It makes use of a unique policy change that caused a decrease of the taxation on advertising expenditures in parts of Austria and a simultaneous increase in other parts. Advertising expenditures move immediately in the opposite direction to the marginal costs of advertising. Simultaneously the price reaction to advertising is negative in some industries (food, education) and positive in other industries (alcohol, tobacco, transportation, hotels and restaurants), depending on the information content of advertis...
ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS
free text keywords: Advertising, taxation of advertising, effects of advertising, Strategy and Management, Industrial and Manufacturing Engineering, Industrial relations, Aerospace Engineering, Globalization, Marginal cost, Rlab, computer.programming_language, computer, Microeconomics, Poverty, Download, Industrial organization, Public policy, Unemployment, media_common.quotation_subject, media_common, Economics, Advertising, Economic research, jel:H25, jel:M37
Related Organizations
47 references, page 1 of 4

[1] Abernethy, Avery M. and Daniel D. Butler Advertising Information: Services versus Products, Journal of Retailing, 1992, 68(4).

[2] Abernethy, Avery M. and George R. Franke The Information Content of Advertising: A Meta-Analysis, Journal of Advertising, 1996, 25(2), pages 1-17.

[3] Ackerberg, Daniel A. Empirically distinguishing informative and prestige e ects of advertising, RAND Journal of Economics, Vol 32 (2), 2001, pages 316-333.

[4] Anderson, Simon P. and Regis Renault Advertising Content, American Economic Review, 2006.

[5] Angrist, Joshua and Jorn-Ste en Pischke The Credibility Revolution in Empirical Economics: How Better Research Design is Taking the Con out of Econometrics, NBER Working Paper No. 15794, March 2010. [OpenAIRE]

[6] Arkolakis, Konstantinos Market Penetration Costs and the New Consumers Margin in International Trade, NBER working paper 14214, 2008. [OpenAIRE]

[7] Bagwell, Kyle, `Handbook of industrial organization', Mark Armstrong and Robert Porter (Edt.), North-Holland, 2007.

[8] Bain, Joe S., Industrial Organization, New York: John Wiley, 1968.

[9] Becker, Gary S. and Kevin M. Murphy A Simple Theory of Advertising as a Good or Bad, Quarterly Journal of Economics, 1993, 108, pages 941-64.

[10] Bertrand, Marianna, Esther Du o and Sendhil Mullainathan, How much should we trust di erences-in-di erences estimates?, The Quarterly Journal of Economics, February 2004.

[11] Bester, Helmut and Emmanuel Petrakis, Price competition and advertising in oligopoly, European Economic Review, 1995, pages 1075-1088.

[12] Benham, Lee The E ect of Advertising on the Price of Eyeglasses, Journal of Law and Economics, Vol. 15 (2), 1972.

[13] Bundesgesetzblatt fur die Republik O sterreich, Teil 1, Jahrgang 2000, Ausgegeben am 31. Mai 2000.

[14] Butters, Gerard Equilibrium Distributions of Sales and Advertising Prices, The Review of Economic Studies, Vol. 44, pages 465-491, (1977).

[16] Caves, Richard E. and David P. Greene Brands' quality levels, prices, and advertising outlays: Empirical evidence on signals and information costs, International Journal of Industrial Organization, Vol. 14 (1), 29-52.

47 references, page 1 of 4
Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue
publication . Article . Preprint . 2011

advertising expenditure and consumer prices

Ferdinand Rauch;