The economics of tobacco advertising: spending, demand, and the effects of bans

This study examines most of the published evidence worldwide on the effects of aggregate advertising and of advertising bans on aggregate cigarette and tobacco consumption.

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...

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