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Revisiting the Advertising - Concentration Issue

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  • Ward, Ronald W.
  • Behr, Robert M.

Abstract

Increases in advertising efforts are reasonably well documented among most U.S. industries [Nelson, p.431. Yet the economic controversy relating to the causal linkage between advertising intensity and changing market structures has by no means been settled. Advertising can represent a major barrier to entry via its role in achieving product differentiation. In contrast advertising may enhance competition with the dissemination of information through competitive advertising, While the advertising issues are varied and complex, this paper will setforth additional empirical evidence showing the relationship between advertising intensity and changing industry structure. In particular, the intensity of advertising across industry levels of concentration will be addressed and reference given to the food industries.

Suggested Citation

  • Ward, Ronald W. & Behr, Robert M., 1979. "Revisiting the Advertising - Concentration Issue," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278214, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea79:278214
    DOI: 10.22004/ag.econ.278214
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    References listed on IDEAS

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    1. Strickland, Allyn D & Weiss, Leonard W, 1976. "Advertising, Concentration, and Price-Cost Margins," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 1109-1121, October.
    2. Stanley I. Ornstein, 1977. "Industrial Concentration and Advertising Intensity," Books, American Enterprise Institute, number 969587, September.
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