The impact of banning advertising in the crisps market

Abstract

There is policy interest in banning advertising of junk foods to try to lower consumers' consumption of these products. The impact of such a policy will depend on how brand advertising influences consumer demand. It will also depend on the pricing response of oligopolistic firms. Using transaction level purchase data and detailed advertising data, we simulate the impact of an advertising ban on one type of junk, allowing for the strategic behaviour of the firms operating in the market.