How does advertising affect market performance? A note on generic advertising

Stephen F. Hamilton, Timothy Richards, Kyle W. Stiegert

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


We propose a novel approach to estimating the effect of advertising on market performance that relies on the preferences of firms participating in generic advertising programs. Generic advertising campaigns provide a unique window to observe advertising effects on market performance, because rotations in market demand systematically redistribute advertising rents among firms according to observable characteristics on producer size. We examine producer attitudes towards generic advertising in the "Beef. It's What's for Dinner!" campaign of the U.S. Beef Checkoff program, the subject of the recent and controversial Supreme Court ruling on generic advertising as a form of government speech. We find the likelihood producers favor an expansion of the advertising program increases in their operating scale. This finding is consistent with an advertising campaign that has led to a counterclockwise rotation of market demand and a commensurate increase in market performance in the U.S. beef market. (JEL L1, M37, Q13)

Original languageEnglish (US)
Pages (from-to)1183-1195
Number of pages13
JournalEconomic Inquiry
Issue number2
StatePublished - Apr 1 2013

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics


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