Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals
The Case of Antidepressants
Bibliographic Data
| ID | 10177201 |
|---|---|
| Authors | Bradley Shapiro (0000-0003-1938-6727, University of Chicago, corresponding author), Bradley T Shapiro |
| Year | 2017 |
| Volume | 126 |
| Issue | 1 |
| Pages | 381-437 |
| Publication date | 2017-10-06 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/695475 |
| OpenAlex | W3124531846 |
| Language | EN |
| Citations received | 10 |
| References cited | 36 |
Exploiting the discontinuity in advertising along the borders of television markets, I estimate that television advertising of prescription antidepressants exhibits significant positive spillovers on rivals’ demand. I apply this identification in a demand model, where estimated parameters indicate significant and persistent spillovers driven by market expansion. Using the demand estimates to calibrate a stylized supply model, I explore the consequences of the positive spillovers on firm advertising choice. Compared with a competitive benchmark in which firms optimally free ride, simulations suggest that a category-wide advertising cooperative would produce a significant increase in total advertising
Advertising · Benchmark (surveying · Business · Commerce · Econometrics · Economics · Identification (biology · Macroeconomics · Medical prescription · Microeconomics · On demand · Spillover effect · Stylized fact · Supply and demand · Consumer Market Behavior and Pricing · Digital Platforms and Economics · Medicine · Merger and Competition Analysis · Pharmacology
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| Unique citing works | 10 |
|---|---|
| Citations per year | 1,25 |
| Citation span | 2018 - 2025 (8) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 10 |