Advertising Soft Drinks to Children: Are Voluntary Restrictions Effective?
Article first published online: 18 APR 2013
© 2013 Wiley Periodicals, Inc.
Volume 29, Issue 4, pages 469–485, Autumn 2013
How to Cite
Berning, J. and McCullough, M. (2013), Advertising Soft Drinks to Children: Are Voluntary Restrictions Effective?. Agribusiness, 29: 469–485. doi: 10.1002/agr.21343
- Issue published online: 4 OCT 2013
- Article first published online: 18 APR 2013
- USDA NIFA Special. Grant Number: CONS-2010–02552
Using nonlinear time series models, the authors explore the effects of an industry-led initiative to have firms voluntarily restrict television advertising of carbonated soft drinks to children. They find that the market leader reduces its advertising to both adults and children and the second largest firm reduces advertising to adults. Advertising by a nonparticipating firm, however, increased for adults following the ban. The results emphasize the potential benefits and difficulty of coordinating cooperative behavior in this type of industry. Such policy strategies may be more effective directed at industries and not at individual firms.