BEGGAR-THy-NEIGHBOR ADVERTISING : THEORY AND ApPLICATION TO GENERIC COMMODITY PROMOTION PROGRAMS

@inproceedings{Alston2008BEGGARTHyNEIGHBORA,
  title={BEGGAR-THy-NEIGHBOR ADVERTISING : THEORY AND ApPLICATION TO GENERIC COMMODITY PROMOTION PROGRAMS},
  author={Julian M. Alston and JOHN W. FREEBAIRN and Jennifer S. James},
  year={2008}
}
Profits from generic advertising by a producer group often come partly at the expense of producers of closely related commodities. The resulting tendency toward excessive advertising is exacerbated by check-off funding. To analyze this beggar-thy-neighbor behavior we compare a scenario where different producer groups cooperate and choose their advertising expenditures jointly to maximize the sum of profits across the groups, and a scenario where they optimize independently. In an illustrative… CONTINUE READING

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