Abstract
The main point of Kinnucan and Miao can be understood by considering the case of two related goods where the first good (good 1) is an advertised commodity. An effective advertising program will shift the demand curve for good 1 to the right and the demand for good 2 to the left, with the magnitudes of the shifts depending on the own-advertising elasticity of good 1 and the cross-advertising elasticity of good 2. The rightward shift of good 1's demand curve will cause its price to rise, and the magnitude of the price increase depends on the extent of the demand curve shift as well as the slopes of the demand and supply curves of good 1. Similar reasoning applies to the price of good 2. Kinnucan and Miao refer to these shifts in demand due to
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