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STICERD Industrial Organisation Seminars

Estimating the Effects of Banning Advertising on Demand and Firms' Pricing

Pierre Dubois (Toulouse), joint with Rachel Griffith and Martin O'Connell

Monday 11 November 2013 12:30 - 14:00

Due to the onging coronavirus outbreak, many of our seminars and public events this year will continue as online seminars. Please check our website listings and Twitter feed @STICERD_LSE for updates.


About this event

There is considerable interest in the effectiveness of regulation as a means of reducing consumption of specific foods, in particular those that are of low nutritional quality. In both the US and the UK there are currently restrictions on the advertising of junk food, such as crisps (potato chips), confectionery and biscuits, in particular to children. The impact of such a policy will depend on how brand advertising influences consumer demand and on the pricing response of oligopolistic firms. We use transaction level purchase data and detailed advertising data on the UK crisps market to estimate a structural model with dynamic demand and supply. We simulate the impact of a ban on advertising, allowing for strategic pricing response of firms operating in the market. We find that such a ban would allow decrease crisps consumption and improve welfare.

Industrial Organisation seminars are held on Mondays in term time at 12:30-14:00, ONLINE, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Lubala Chibwe, either by email: l.chibwe@lse.ac.uk.

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