Generic advertising without supply control: implications of funding mechanisms for advertising intensities in competitive industries

John W. Freebairn, Julian M. Alston, John W. Freebairn & Julian M. Alston
Producer profit‐maximising rules for generic commodity advertising programs and associated funding levies are derived. Lump‐sum, per unit and ad valorem levies, and government subsidy funding arrangements are compared and contrasted. The initial single‐product competitive market model is extended to incorporate international trade, government price policies, and multiple commodity interactions.
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