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Competition and the Cigarette TV Advertising Ban

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  • Eckard, E Woodrow, Jr

Abstract

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. Copyright 1991 by Oxford University Press.

Suggested Citation

  • Eckard, E Woodrow, Jr, 1991. "Competition and the Cigarette TV Advertising Ban," Economic Inquiry, Western Economic Association International, vol. 29(1), pages 119-133, January.
    • Handle: RePEc:oup:ecinqu:v:29:y:1991:i:1:p:119-33
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