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An economic analysis of generic egg advertising in California, 1985-1995

Author

Listed:
  • Todd M. Schmit

    (Department of Agricultural, Resource, and Managerial Economics at Cornell University)

  • J. Carlos Reberte

    (Department of Agricultural, Resource, and Managerial Economics at Cornell University)

  • Harry M. Kaiser

    (346 Warren Hall, Cornell University, Ithaca, NY 14853-7801)

Abstract

A supply and demand econometric model of the California egg industry was estimated to evaluate the impact of generic egg advertising on producer prices and returns from 1985 to 1995. Econometric estimation indicated advertising had a positive impact on producer prices and net profits. The model was simulated with existing advertising expenditure levels, and with expenditures 1% higher than actual levels. A 1% increase in advertising expenditures resulted in an average 0.13% increase in producer prices and a marginal rate of return to advertising of 6.9. In other words, each additional dollar spent on advertising generated $6.90 in producers' profits. © 1997 John Wiley & Sons, Inc.

Suggested Citation

  • Todd M. Schmit & J. Carlos Reberte & Harry M. Kaiser, 1997. "An economic analysis of generic egg advertising in California, 1985-1995," Agribusiness, John Wiley & Sons, Ltd., vol. 13(4), pages 365-373.
    • Handle: RePEc:wly:agribz:v:13:y:1997:i:4:p:365-373
    DOI: 10.1002/(SICI)1520-6297(199707/08)13:4<365::AID-AGR2>3.0.CO;2-X
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    References listed on IDEAS

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    Cited by:

    1. Schmit, Todd M. & Kaiser, Harry M., 1998. "Egg Advertising, Dietary Cholesterol Concerns, and U.S. Consumer Demand," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 43-52, April.
    2. Hailu, Getu & Goddard, Ellen W., 2010. "The changing egg demand in Canada: do advertising and health message contents matter?," 115th Joint EAAE/AAEA Seminar, September 15-17, 2010, Freising-Weihenstephan, Germany 116427, European Association of Agricultural Economists.
    3. Hunnicutt, Lynn & Israelsen, L. Dwight, 2003. "Incentives to Advertise and Product Differentiation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-14, December.
    4. Capps, Oral, Jr. & Williams, Gary W. & Dang, Trang, 2010. "Effects of Lamb Promotion on Lamb Demand and Imports," Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    5. Kinnucan, Henry W., 1999. "Advertising Traded Goods," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-19, July.
    6. Deodhar, Satish Y. & Fletcher, Stanley M., 1998. "Dynamic Effects Of Peanut Butter Advertising On Peanut Butter Demand," Faculty Series 16702, University of Georgia, Department of Agricultural and Applied Economics.
    7. Peters, Carol, 1999. "Department Series Publications: June 1992 through December 1998," EB Series 186452, Cornell University, Department of Applied Economics and Management.
    8. Shew, Aaron M. & Nalley, Lawton L. & Durand-Morat, Alvaro & Meredith, Kylie & Parajuli, Ranjan & Thoma, Greg & Henry, Christopher G., 2021. "Holistically valuing public investments in agricultural water conservation," Agricultural Water Management, Elsevier, vol. 252(C).

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