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Advertising Restrictions, Competition, And Alcohol Consumption

Author

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  • Victor J. Tremblay
  • Kumiko Okuyama

Abstract

Distilled spirits producers recently voted to eliminate their voluntary ban on broadcast advertising. The ban received public support because of the high social cost associated with alcohol consumption and the belief that advertising promotes alcohol consumption and abuse. In spite of this belief, the empirical evidence indicates that advertising has no significant effect on the market demand for distilled spirits. This evidence has led many policy economists to conclude that eliminating the ban will have no effect on alcohol consumption. The purpose of this research is to show that this conclusion is incorrect because it ignores the fact that advertising restrictions may affect industry competition as well as market demand.

Suggested Citation

  • Victor J. Tremblay & Kumiko Okuyama, 2001. "Advertising Restrictions, Competition, And Alcohol Consumption," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 313-321, July.
    • Handle: RePEc:bla:coecpo:v:19:y:2001:i:3:p:313-321
    DOI: 10.1093/cep/19.3.313
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Mingxia & Sexton, Richard J. & Alston, Julian M., 2002. "Does Branded Food Product Advertising Help Or Hurt Farmers?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-25, December.
    2. Mullins, Michelle & Milyo, Jeffrey & Sykuta, Michael E., 2006. "Regulating for Public Health: Motivations for and Efficacy of State Alcohol Regulations," 2006 Annual meeting, July 23-26, Long Beach, CA 21176, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Craig A. Gallet, 2003. "Advertising and Restrictions in the Cigarette Industry: Evidence of State‐by‐State Variation," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 338-348, July.

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