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Quantity and quality effects of advertising: a demand system approach
Author(s) -
Dong Diansheng,
Kaiser Harry M.,
Myrland Øystein
Publication year - 2007
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2007.00209.x
Subject(s) - quality (philosophy) , norwegian , advertising , unit (ring theory) , fish <actinopterygii> , consumer demand , economics , on demand , business , microeconomics , commerce , mathematics , fishery , biology , linguistics , philosophy , mathematics education , epistemology
Quantity and quality effects of advertising are investigated in this article. A censored demand system is estimated for fish, beef, pork, and other meats using Norwegian household data. In the demand model, generic fish advertising and meat advertising is introduced as demand shifters, and at the same time unit values are treated as endogenous. The unit values capture the quality of the commodities. Empirical findings show that advertising can have both quantity and quality effects on household demand.