A Cointegration Analysis of Advertising and Sales Data

A Cointegration Analysis of Advertising and Sales Data It is argued that the nature of the industry levelrelationship between advertising and sales can givesome indication of the form of competition in anindustry. Hence, this paper examines whether there isa long-run, stable, equilibrium relationship betweenadvertising and sales for food and soft drinksindustries. Results suggest that the variables arenon-stationary, but do not contain seasonal unitroots. Cointegration is not identified between softdrinks industry advertising and sales, which, togetherwith the results of differenced variable regressions,suggests that rivalry between firms in this industrymay be intense. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

A Cointegration Analysis of Advertising and Sales Data

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007819604245
Publisher site
See Article on Publisher Site

Abstract

It is argued that the nature of the industry levelrelationship between advertising and sales can givesome indication of the form of competition in anindustry. Hence, this paper examines whether there isa long-run, stable, equilibrium relationship betweenadvertising and sales for food and soft drinksindustries. Results suggest that the variables arenon-stationary, but do not contain seasonal unitroots. Cointegration is not identified between softdrinks industry advertising and sales, which, togetherwith the results of differenced variable regressions,suggests that rivalry between firms in this industrymay be intense.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 3, 2004

References

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