Measuring the Effects of Generic Dairy Advertising in a Multi‐Market Equilibrium
构建了一个多市场均衡位移模型，分析乳制品广告效果，发现忽略市场间横向联系会高估广告有效性，导致过度广告投入。
Abstract We develop a multi‐market equilibrium displacement model that allows demand linkages across downstream product markets, and supply linkages through the common use of a raw commodity as the key input. Applying the model to the dairy sector, we find that the effectiveness of producer‐funded advertising depends on the demand relationships across dairy product markets (cross‐price and cross‐advertising elasticities) as well as the reallocation of milk toward the advertised market. We show that the previous literature, which ignores the horizontal linkages highlighted here, tends to overstate the effectiveness of generic commodity promotion for dairy, and thus results in too much advertising.