Dubois, Pierre, Griffith, Rachel and O'Connell, Martin (2016) The effects of banning advertising in junk food markets. TSE Working Paper, n. 16-647, Toulouse

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Abstract

There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market { the potato chips market. We exploit consumer level exposure to adverts to estimate demand, allowing advertising to potentially shift the weight consumers place on product healthiness, tilt demand curves, have dynamic effects and spillover effects across brands. We simulate the impact of a ban and show that the potential health benefits are partially offset by firms lowering prices and by consumer switching to other junk foods.

Item Type: Monograph (Working Paper)
Language: English
Date: May 2016
Place of Publication: Toulouse
Uncontrolled Keywords: advertising, demand estimation, dynamic oligopoly, welfare
JEL Classification: L13 - Oligopoly and Other Imperfect Markets
M37 - Advertising
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 31 May 2016 10:23
Last Modified: 28 Jun 2021 14:52
OAI Identifier: oai:tse-fr.eu:30473
URI: https://publications.ut-capitole.fr/id/eprint/21977

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