Demand spillovers, combative advertising, and celebrity endorsements

Craig L. Garthwaite*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

This paper studies the economic effects of endorsements. In the publishing sector, endorsements are found to be a business stealing form of advertising that raises title level sales without expanding the market size. If anything, the endorsements decrease aggregate adult fiction sales. This might be a result of the endorsed books being more difficult than those that otherwise would have been purchased. Economically meaningful sales increases are also found for nonendorsed titles written by endorsed authors. This spillover demand demonstrates the broad range of benefits of advertising for firms operating in a multiproduct brand setting.

Original languageEnglish (US)
Pages (from-to)76-104
Number of pages29
JournalAmerican Economic Journal: Applied Economics
Volume6
Issue number2
DOIs
StatePublished - Apr 2014

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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