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COMPETITION AND THE CIGARETTE TV ADVERTISING BAN
Author(s) -
Eckard E. Woodrow
Publication year - 1991
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1991.tb01258.x
Subject(s) - competition (biology) , advertising , television advertising , economics , business , ecology , biology
The 1970 ban on television advertising for cigarettes constitutes a quasi‐experiment allowing the effect of advertising on competition to be evaluated. Assuming the ban reduced the efficacy of industry advertising, an analysis of various proxies for competition before and after the ban enables one to deduce whether advertising promotes or limits competition among cigarette firms. The results indicate that in this case the restriction of advertising reduced competition.