publication . Article . Other literature type . 2014

Demand Spillovers, Combative Advertising, and Celebrity Endorsements

Craig L. Garthwaite;
Open Access
  • Published: 01 Jan 2014 Journal: American Economic Journal: Applied Economics, volume 6, issue 2 April, pages 76-104
  • Publisher: American Economic Association
Abstract
This paper studies the economic effects of endorsements. In the publishing sector, endorsements are found to be a business stealing form of advertising that raises title level sales without expanding the market size. If anything, the endorsements decrease aggregate adult fiction sales. This might be a result of the endorsed books being more difficult than those that otherwise would have been purchased. Economically meaningful sales increases are also found for nonendorsed titles written by endorsed authors. This spillover demand demonstrates the broad range of benefits of advertising for firms operating in a multiproduct brand setting.
Subjects
free text keywords: jel:M37, jel:L82, jel:M31
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publication . Article . Other literature type . 2014

Demand Spillovers, Combative Advertising, and Celebrity Endorsements

Craig L. Garthwaite;