What Explains the Use of Direct‐to‐Consumer Advertising of Prescription Drugs?
研究了美国处方药直接面向消费者广告的决定因素，发现新药、高质量药和治疗不足疾病的药物更常被广告，且广告支出随竞争增加而减少。
Following the clarification of advertising regulation in 1997, direct‐to‐consumer advertising (DTCA) of prescription drugs has skyrocketed in the U.S., creating a controversy over the role of DTCA. Little is known, however, regarding what affects firms' advertising decisions and which drugs have been advertised to consumers. Using brand‐level advertising data, I examine the determinants of DTCA of prescription drugs. I find that drugs that are new, of high quality, and for under‐treated diseases are more frequently advertised. Furthermore, advertising outlays decrease with competition. These results complement the demand‐side evidence that DTCA has a market‐expanding effect but little business‐stealing effect.