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          Volume 18, Number 2, Spring 2000 >

Please use this identifier to cite or link to this item: http://purl.umn.edu/14660

Title: EXCISE TAXES AND COMMODITY PROMOTION: BAYESIAN RETRIEVAL OF THE OPTIMUM
Authors: Holloway, Garth J.
Keywords: Bayesian estimation
commodity promotion as an experiment
distribution of the optimum
Taylor-series expansion
Issue Date: 2000
Abstract: This article shows how the solution to the promotion problem--—the problem of locating the optimal level of advertising in a downstream market--—can be derived simply, empirically, and robustly through the application of some simple calculus and Bayesian econometrics. We derive the complete distribution of the level of promotion that maximizes producer surplus and generate recommendations about patterns as well as levels of expenditure that increase net returns. The theory and methods are applied to quarterly series (1978:2S1988:4) on red meats promotion by the Australian Meat and Live-Stock Corporation. A slightly different pattern of expenditure would have profited lamb producers.
URI: http://purl.umn.edu/14660
Institution/Association: Journal of Agribusiness>Volume 18, Number 2, Spring 2000
Total Pages: 20
Language: English
From Page: 135
To Page: 154
Collections:Volume 18, Number 2, Spring 2000

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