How Direct-to-Consumer Advertising for Prescription Drugs Affects Consumers' Welfare: A Natural Experiment Tests the Impact of FDA Legislation
Prokriti Mukherji
School of Management and Business, King's College London
Ramkumar Janakiraman
Darla Moore School of Business, University of South Carolina
Shantanu Dutta
Marshall School of Business, University of Southern California
Surendra Rajiv
NUS Business School, National University of Singapore
MANAGEMENT SLANT
- Consumer welfare appears to increase as a result of the U.S. Food and Drug Administration's (FDA's) relaxation of the direct-to-consumer advertising (DTCA) rule.
- DTCA has a significant impact on both overall category sales and individual drug choice....