Citation

Discussion Paper Details

Please find the details for DP11316 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The effects of banning advertising in junk food markets

Author(s): Pierre Dubois, Rachel Griffith and Martin O'Connell

Publication Date: June 2016

Keyword(s): advertising, Demand estimation, dynamic oligopoly and welfare

Programme Area(s): Industrial Organization

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11316

Bibliographic Reference

Dubois, P, Griffith, R and O'Connell, M. 2016. 'The effects of banning advertising in junk food markets'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11316