Advertising Restrictions and Competition in the Children’s Breakfast Cereal Industry

  title={Advertising Restrictions and Competition in the Children’s Breakfast Cereal Industry},
  author={C. Robert Clark},
  journal={The Journal of Law and Economics},
  pages={757 - 780}
  • C. R. Clark
  • Published 1 May 2003
  • Economics, Art
  • The Journal of Law and Economics
In this article I analyze the consequences of advertising in the children’s breakfast cereal market. I take advantage of the prohibition on advertising directed at children in the province of Quebec to examine the nature of advertising and to determine whether the restriction hinders competition. I show that prices are higher in Quebec than in Canadian provinces that permit advertising. This finding suggests that the informative role of advertising dominates any persuasive role, since the most… 
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