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Excise Taxes and Commodity Promotion: A Diagrammatic Motivation

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  • Holloway, Garth J.

Abstract

This note shows how the solution to the promotion problem—the problem of locating the optimal level of advertising in a downstream market—can be motivated simply, diagrammatically, and without the need to resort to complicated mathematical arguments. The optimality condition is for the level of the farm price to remain invariant to marginal adjustments in the program.

Suggested Citation

  • Holloway, Garth J., 1998. "Excise Taxes and Commodity Promotion: A Diagrammatic Motivation," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 16(2), pages 1-6.
    • Handle: RePEc:ags:jloagb:90444
    DOI: 10.22004/ag.econ.90444
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    File URL: https://ageconsearch.umn.edu/record/90444/files/JAB16twoE.pdf
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    Cited by:

    1. Holloway, Garth J. & Peyton, L. James & Griffith, Garry R., 2000. "Was the Australian Meat and Live-stock Corporation's advertising efficient?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), pages 1-27.
    2. Holloway, Garth J., 2000. "Excise Taxes And Commodity Promotion: Bayesian Retrieval Of The Optimum," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(2), pages 1-20.

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    Keywords

    Agribusiness; Marketing;

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