Speaker: Professor Rachel Griffith (University of Manchester)
Hosted by: University of Liverpool Management School's Economics Group
Open to: Management School PhD students and academic staff, with no sign up needed
Date: Wednesday 13 March 2024
Time: 2-3.15pm
Place: Sherrington Building, Ashton Street - Seminar Room 1
Abstract
We develop a dynamic equilibrium model of firm competition to study the impact of counterfactual policies, such as taxes and advertising restrictions, on pricing, advertising, consumption and welfare.
We estimate the model using micro level data on the market for colas.
We use consumer level exposure to television commercials to estimate the impact of advertising on product choice, model firms’ dynamic competition through their choice of advertising budgets and product prices, and exploit firms’ practice of delegating decisions over advertising slots to agencies to link the rich consumer-level advertising variation with firms’ strategic choice variables.
We show that a sugarsweetened beverage tax leads to a reduction in advertising and that the incremental effects of implementing advertising restrictions are substantially reduced with a tax in place.
Speaker
Rachel is Professor of Economics at the University of Manchester and a Research Director of the Institute for Fiscal Studies (IFS). She is a co-editor of the Journal of Political Economy.
She is a Fellow of the Econometric Society, the British Academy, the Academy of Social Sciences and a Research Fellow of CEPR.
She is an Honarary Foreign Member of the American Economic Association, an Associate Editor of Econometrica and sits on the Council of the ESRC.
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