Abstract
In Chapters 1 to 6 we followed the traditional approach to consumption theory to analyse the demand for a commodity in terms of the consumer’s income and prices. This chapter extends the differential approach to consumption theory (see Section 1.10) to analyse the effects of advertising. We give a comparative statics analysis of advertising and results on separability of the consumer’s utility function in the presence of advertising. This chapter is exclusively theoretical. In Chapter 8 we apply this theoretical framework to U.K. alcohol data.
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© 1995 Springer-Verlag Berlin · Heidelberg
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Selvanathan, E.A. (1995). Advertising and Consumption: A Theoretical Analysis. In: Recent Developments in Applied Demand Analysis. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-85205-3_7
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DOI: https://doi.org/10.1007/978-3-642-85205-3_7
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-85207-7
Online ISBN: 978-3-642-85205-3
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