Advertising as a Signaling Device: Simulated Maximum Likelihood Estimation of a Multiple Random Effects Count Data Model
Posted: 2 Jul 2009
Date Written: August 28, 2008
The paper empirically studies whether pharmaceutical firms use advertising as a signal for high quality drugs. A multiple random effects count data hurdle model is specified and a simulated maximum likelihood estimation approach is developed and utilized in the empirical analysis.
Keywords: Signaling, Advertising, Multiple random effects, Simulated maximum likelihood, Count data
JEL Classification: L15, L21
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