Concentration and Advertising in Consumer and Producer Markets

Market Share Dispersion Among Leading Firms as a Determinant of Advertising Intensity

“…Although the theory is correct to imply that at some lev centration over-investment in advertising will be checked, intuition shoul that such levels of concentration are unlikely to generate sufficient interde to sustain joint industry advertising reductions. We encourage the re-esti previous studies that included the 4-digit "toilet preparations" industry in t which involves most every previous study (e.g., Buxton et al, 1984).…”

“…Thus, markets where the buyers are more likely be professional, such as intermediate goods markets, should be less intensiv advertised, ceteris paribus.1 Furthermore, promotional techniques vary betw consumer and producer buyers. For example, sales representatives are more ap priate when selling to a few purchasers (Buxton et al, 1984). The numerator, was total sales to household consumers as reported by SAMI or IRI, whereas denominator was Census product class VOS.…”

“…If profitability or concentration is endogenously determined with advertising intensity, ordinary least squares estimates of the model parameters would be biased. Previous researchers have estimated advertising intensity within systems of simultaneous equations (e.g., Comanor and Wilson, 1974;Greer, 1971;Martin, 1979;Pagoulatos and Sorenson, 1983;Kardasz and Stollery, 1984;Zellner, 1989), though the issue of simultaneity remains unresolved (Buxton et al, 1984). For the purposes of introducing a new variable into the literature, we argue that the single equation approach is acceptable and offer evidence based on Hausman tests for independence of the regressors that suggest that our estimates do not suffer from simultaneity bias.…”

Pricing, Advertising, and Market Structure with Frictions

“…These costly signals sent by sellers are only observed probabilistically by buyers. 3 Without the advertising technology and buyer search, sellers would not be able to sell and the market would not exist as emphasized by Butters(1977). In other words, when sellers send signals only a fraction of buyers observe all prices with a certain probability.…”

Interindustry differences in advertising in U.S. manufacturing: 1963–1977

“…Whereas Cable (1972) and Sutton (1974) found a significant quadratic relationship between advertising and concentration, Reekie's empirical results (1975) indicated the absence of any relationship between advertising and market structure. However, the most recent analysis using United Kingdom data by Buxton, Davies and Lyons (1984) found strong support for a quadratic relationship between advertising and concentration. 2…”