Advertising and pricing at multiple-output firms: evidence from U.S. thrift institutions

Robert DeYoung and Evren Ors

No WP-04-25, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: We derive five hypotheses regarding market competition, price, and advertising from a theoretical model of a profit maximizing depository institution, and test these conjectures in a simultaneous system of deposit interest rates and advertising expenditures for a data panel of 1,867 thrift institutions that offer 13 different deposit products in 666 local markets in the U.S. between 1994 and 2000. We find some support for each of our hypotheses ? branding, information, Dorfman-Steiner, structure-advertising, and structure-price ? with the strength of the results often depending on the attributes of the deposit products or the characteristics of the thrifts.

Keywords: Advertising; Thrift institutions (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-bec and nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.chicagofed.org/digital_assets/publicati ... s/2004/wp2004_25.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedhwp:wp-04-25

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Paper Series from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Lauren Wiese ().