The Economics Of Tobacco Advertising:
Spending, Demand, and the Effects of Bans
Kent M. LancasterandAlyse R. LancasterUniversity of Miami
Introduction
For decades worldwide, the tobacco industry, advertisers and governmental agencies have debated whether there is a relationship between aggregate cigarette advertising and aggregate cigarette consumption. The tobacco industry and advertisers have typically contended that the effects of tobacco advertising are limited to differentiation between brands, and that such promotions have little or no effect on tobacco consumption in general. Governmental organisations such as the US Federal Trade Commission and the European Union have suggested that advertising does...