Word-of-author advertising and the consumer: An empirical analysis of the quality of product brands noted by authors of popular cultural works

The term word-of-author advertising has been used to refer to the fact that writers of screenplays, television dramas, novels, and other popular cultural products are using brand names in the texts of their works. The study draws upon data from 265Consumer Reports tests conducted from 1950–1979 to determine the quality of the products associated with brands which are frequently used in this way as compared to those which are not. The results indicate that in a majority of the tests, product quality was higher for the frequently used brand names in word-of-author advertising, but a substantial minority of test reports proved to be exceptions to this general finding. Implications of the study findings are drawn for consumer policy, especially as it relates to educational programs.

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Werbung in populären Kunstwerken und der Verbraucher: eine empirische Analyse der Qualität solcher Produktmarken, die in populären Kunstwerken genannt werden

Zusammenfassung Der Begriff Word-of-Author-Werbung bezieht sich auf die Fälle, wo Autoren von Bühnen- und Fernsehstücken, von Romanen und anderen populären Kunstprodukten in ihren Texten bekannte Markennamen verwenden. Der Beitrag berichtet über eine empirische Studie anhand von 265 Tests der amerikanischen ZeitschriftConsumer Reports aus der Zeit von 1950 bis 1979, um Marken, deren Name in dem genannten Sinne häufig verwendet werden, zu vergleichen mit solchen Marken, wo dies nicht der Fall ist.Die Ergebnisse zeigen, daß die Mehrzahl der häufig verwendeten Marken zwar tatsächlich ein höheres Qualitätsurteil erzielte als andere Produkte. Dies gilt aber nicht für alle: Eine beachtliche Minderheit von Marken macht eine Ausnahme.Abschließend werden einige verbraucherpolitische Schlußfolgerungen gezogen und insbesondere gefordert, die untersuchte Art von Konsumgüterwerbung stärker als bisher in der werbekundlichen Verbrauchererziehung zu berücksichtigen.

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Monroe Friedman is Professor of Psychology at Eastern Michigan University, Ypsilanti, MI 48197, USA.     

Testing for Asymmetric Pricing in the Alberta Pork Market

Asymmetry tests have been used by agricultural economists to determine if the effects of price changes in one region or level in the marketing channel are transmitted to other regions or levels in the marketing channel in an identical manner for price increases and decreases. Two tests are normally conducted: sum of coefficients tests and speed of adjustment tests. In this analysis, these two tests are conducted on weekly price response equations that relate Alberta and Ontario price changes. Six separate periods of analysis are used to reflect institutional changes in the Alberta market. Evidence of asymmetrical price response is detected for the period immediately preceding the establishment of the Alberta Pork Producers Marketing Board.
Les spécialistes en économie rurale vérifient i'asymétrie des prix pour voir si la fluctuation des cours dans une région ou un élément du circuit se transmet aux autres régions ou éléments de la même façon pour les hausses et les baisses de prix. On effectue habituellement deux épreuves: (1) somme des résultats des épreuves sur les coefficients et (2) vérification de la rapidité d'ajustement. Les auteurs ont appliqué ces deux épreuves aux équations qui mesurent la réaction des prix hebdomadaires et relient les fluctuations des prix entre l'Ontario et l'Alberta. lis se sont servis de six périodes d'analyse distinctes pour tenir compte des changements institutionnels survenus sur le marché albertain. Les résultats indiquent une réaction asymétrique des prix pour la période qui a immédiatement précédé la création de l'Office de commercialisation des producteurs de pores de l'Alberta.     

Complementarities in economic reform

The authors report on technical work which examines the implications of combining complementarities and convex adjustment costs in a model of economic reform. The main results are that the optimal pace of reform is higher if there is a larger initial crisis, stronger pro-reform institutions, and greater immediate potential entrepreneurship. This supports the argument that radical reform was appropriate for most countries in Eastern Europe and the former Soviet Union, while gradualism was more appropriate for a country like China.     

U.S. tourism in Mexico: An empirical analysis

This study estimated demand functions for tourism by U.S. residents in Mexico border areas, the Mexican interior, and overseas. There was no evidence that U.S. tourists substitute Mexico for more distant destinations as transportation costs rise. Border tourism is income elastic when the share of U.S. income of the border states is held fixed. Tourism in the Mexican interior is also income elastic. Tourism along the border is price elastic, while tourism in the interior is elastic with respect to U.S. and overseas prices but inelastic with respect to Mexican prices. The rise in the share of the Mexican interior in U.S. overseas tourism is not related to price factors. Recent devaluations of the Mexican peso are unlikely to provide benefits to the Mexican tourism industry.     

Survey evidence on the ‘rationality’ of interest rate expectations

An analysis of predictions of six interest rates over 3-months-ahead and 6-months-ahead horizons, surveyed regularly over eight years, casts doubt on the hypothesis that market participants' expectations are ‘rational’ in Muth's sense. Tests show that the survey respondents did not make unbiased predictions, that (especially for the 6-months-ahead predictions) they did not efficiently exploit the information contained in past interest rate movements, that their respective 3-months-ahead and 6-months-ahead predictions failed to be consistent in the sense required for ‘rationality’, and that (for long-term but not short-term interest rates) their predictions failed to exploit efficiently the information contained in common macroeconomic and macro-policy variables other than the money stock.