Measuring the benefits to advertising under monopolistic competition

Michael A. Boland, John M. Crespi, Jena Silva, Tian Xia

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This paper determines the benefits and costs of firm-level advertising in a monopolistically competitive industry. The model is useful in an environment in which firm-level costs may be absent or imprecise. The empirical example uses data on the advertising for a new line of prune snacks by Sunsweet Growers between 2008 and 2010, revealing average benefit-cost estimates from $1.26 to $4.35 for every dollar allocated to the new product line.

Original languageEnglish (US)
Pages (from-to)144-155
Number of pages12
JournalJournal of Agricultural and Resource Economics
Volume37
Issue number1
StatePublished - Apr 2012

Keywords

  • Advertising
  • Agricultural marketing
  • Benefit-cost analysis
  • Industrial organization
  • Monopolistic competition

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