@article{Zheng:9938,
      recid = {9938},
      author = {Zheng, Yuqing and Kinnucan, Henry W. and Kaiser, Harry M.},
      title = {Measuring and Testing Advertising-Induced Rotation in the  Demand Curve},
      address = {2007},
      number = {381-2016-22097},
      series = {Selected Paper 172302},
      pages = {35},
      year = {2007},
      abstract = {Advertising can rotate the demand curve if it changes the  dispersion of consumers' valuations.  We provide an  elasticity form measure of the advertising-induced demand  curve rotation in five demand models and test for its  presence in the U.S. non-alcoholic beverage market.  The  AIDS model reveals that doubling advertising spending  rotates the demand curves clockwise for milk, and coffee  and tea with associated slope changes of 7.3% and 11.6%.   Soft-drink advertising rotates its demand curve  counterclockwise.  Our policy suggestion is that milk and  soft-drink firms might enhance profits by timing  advertising to coincide with high- and low-price periods,  respectively.},
      url = {http://ageconsearch.umn.edu/record/9938},
      doi = {https://doi.org/10.22004/ag.econ.9938},
}