Middlemen behaviour and generic advertising rents in competitive interrelated industries

摘要: This article focuses on the role of middlemen in determining returns to generic advertising a competitive industry where supply is uncontrolled, price marketing inputs endogenous, and retail markets are interrelated through consumer preferences. Theoretical analysis suggests farm-gate (quasi-rents) overstated when input substitution at level ignored, result confirmed empirical application. As for mark-up behaviour, represented by farm-retail transmission elasticity, general that always increase as elasticity decreases, provided demand more elastic than substitution. Endogenising has little effect rents.