How prohibition on advertising affect the cigarette industry


Problem

Massive cigarette advertising on television was commonplace until laws prohibiting such advertising were introduced in the early 1970's. Imagine prior to such legislation that there were only two brands: Camels and Marlboros sold by two firms in a non-zero sum game.

The two "strategy choices" were limited advertising (low) and massive advertising (high). How might prohibitions on advertising affect the cigarette industry in the short run, and in the long run using a Prisoner's Dilemma sort of argument.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How prohibition on advertising affect the cigarette industry
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