Using nonlinear time series models, the authors explore the effects of an industry-led initiative to have firms voluntarily restrict television advertising of carbonated soft drinks to children. They find that the market leader reduces its advertising to both adults and children and the second largest firm reduces advertising to adults. Advertising by a nonparticipating firm, however, increased for adults following the ban. The results emphasize the potential benefits and difficulty of coordinating cooperative behavior in this type of industry. Such policy strategies may be more effective directed at industries and not at individual firms. [JEL Classifications: I18, L13, M37]. C 2013 Wiley Periodicals, Inc. 1 Specifically, advertising is considered to be directed to children if the audience composition viewing the advertisement has more than 35% children. During the time of this analysis, the threshold was 50%.2 Gross ratings points are a commonly used measure of advertising exposure. They are calculated as the percentage of the targeted audience that views an advertisement times the frequency. Specifically, GRPs can be defined as GRP = F t · R t where for some time interval t, F measures the number of advertisements seen and R measures the percentage of persons who view the advertisement.