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Government regulation of advertising: Good or bad?
Authors:Auke R. Leen
Abstract:Kassarjian and Kassarjian (1988) present some interesting results on the impact of regulation on advertising. They state three hypotheses that are partly confirmed by the facts. The theory behind the three hypotheses is not explicitly stated. In this paper I will first try to reconstruct the implicit theory. Secondly I will give a completely opposing theory and show that it can explain the same facts. The resulting evaluation of the government regulatory programme is negative as opposed to Kassarjian and Kassarjian's evaluation.
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