Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment

Ishida, Junichiro; Takahara, Tsuyoshi

Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment

Ishida, Junichiro; Takahara, Tsuyoshi

Institute of Social and Economic Research Discussion Papers, 2019, 1058, 1-42

Number of Access:531（2025-11-04 13:16 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/73003

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Title	Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment
Creator	NRID 1000040324222 1000040324222 ORCID 0000-0002-0674-0216 0000-0002-0674-0216 researchmap permalink read0116302 read0116302 Scopus Author ID 36927932200 36927932200 CreatorName Ishida, Junichiro
Creator	NRID 1000070844421 1000070844421 CreatorName Takahara, Tsuyoshi
Subject	DTCA
	Advertisement content regulation
	Prescription decision
Abstract	This paper analyzes the optimal content regulation of direct-to-consumer advertisement (DTCA) in a pharmaceutical market, with particular focus on the distinction between product and enlightenment advertisement. Firms are allowed to freely promote their own specific products under product DTCA, whereas they can only advertise the presence of a disease and its typical subjective symptoms under enlightenment DTCA. The content regulation changes the nature of market competition and the incentive to invest in advertisement, thereby yielding substantial welfare and policy implications. The overall welfare impact of the content regulation is ambiguous and depends, among other things, on the cost efffectiveness of advertisement and the market-size distortion induced by product DTCA. We also analyze the effect of free market pricing and argue that a less stringent advertisement regulation, i.e., product DTCA, is often complementary to a less stringent price regulation.
Publisher	The Institute of Social and Economic Research, Osaka University
Source Title	Institute of Social and Economic Research Discussion Papers
Volume (Issue)	1058
Page	1-42
Date of Issued	2019-06
Language	English
Handle URL	https://hdl.handle.net/11094/73003
Relation.references	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2019/DP1058.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Institute of Social and Economic Research Discussion Papers

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2019, 1058, p. 1-42
DC.title	Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment
DC.creator	Ishida, Junichiro
DC.creator	Takahara, Tsuyoshi
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2019-06
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2019/DP1058.pdf
DC.subject	DTCA
	Advertisement content regulation
	Prescription decision
DCTERMS.abstract	This paper analyzes the optimal content regulation of direct-to-consumer advertisement (DTCA) in a pharmaceutical market, with particular focus on the distinction between product and enlightenment advertisement. Firms are allowed to freely promote their own specific products under product DTCA, whereas they can only advertise the presence of a disease and its typical subjective symptoms under enlightenment DTCA. The content regulation changes the nature of market competition and the incentive to invest in advertisement, thereby yielding substantial welfare and policy implications. The overall welfare impact of the content regulation is ambiguous and depends, among other things, on the cost efffectiveness of advertisement and the market-size distortion induced by product DTCA. We also analyze the effect of free market pricing and argue that a less stringent advertisement regulation, i.e., product DTCA, is often complementary to a less stringent price regulation.
DC.format	73003
citation_title	Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment
citation_author	Ishida, Junichiro
citation_author	Takahara, Tsuyoshi
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	English
citation_date	2019-06
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	1058
citation_firstpage	1
citation_lastpage	42
citation_public_url	https://hdl.handle.net/11094/73003
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2019/DP1058.pdf

Advertising Regulations in Pharmaceutical Markets : Product Versus Enlightenment

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