Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals: The Case of Antidepressants

• 成果类型: Article
• 署名作者: Shapiro, Bradley T.
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/695475
• 发表日期: 2018
• 页码: 381-437
• 关键词: PATENT EXPIRATION; state borders; DRUG MARKET; MODEL; industry; CHOICE; equilibrium; INFORMATION; REQUESTS; impacts

摘要

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.