A two-stage Rotterdam model is estimated to determine the effects of advertising on the demand for non-alcoholic beverages in the United States. Results suggest that advertising has no effect on the demand for non-alcoholic beverages taken as a group. However, the hypothesis that advertising has...

Advertising can rotate the demand curve if it changes the dispersion of consumers' valuations. We provide an elasticity form measure of the advertising-induced demand curve rotation in five demand models and test for its presence in the US non-alcoholic beverage market. The Almost Ideal Demand...