Re-interpreting the effect of an advertising ban on cigarette smoking

Victor J Tremblay and Carol Horton Tremblay

Because of the high social cost of cigarette smoking, many countries have imposed advertising restrictions to reduce cigarette consumption.

Re-interpreting the effect of an advertising ban on cigarette smoking

Carol Horton Tremblay and Victor J. Tremblay

Because of the high social cost of cigarette smoking, many countries have imposed advertising restrictions to reduce cigarette consumption. Yet previous research suggests that such advertising constraints have been ineffective in combating smoking. We show that this conclusion is incorrect because it ignores the fact that advertising restrictions affect the extent of competition as well as demand. An advertising ban reduces competition which raises price and decreases consumption.

INTRODUCTION

Given the high social cost associated with cigarette smoking, many countries have...

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