Measuring and Testing Advertising-Induced Rotation in the Demand Curve



(A7)

(A8)

(A9)


lnηiRM
ln Ai


d ln(-cii )   d ln wi

ln Ai     ln Ai


n

w α -α and
j ij ii

j


∂ηADs = - ciiwi
ln Ai w2 ln Ai


ii (w α - α ).
j ij ii

j


Dividing (A8) by ηiAIDS yields:


lnηiAIDS
ln Ai


nn

(-cii ! w )(w a - α ) (cii / wi )(w a - a )
i=j

- ( cii / wi- 1)                  ( cii / wi- 1)


33




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