advertising agency industry? This question is addressed by treating an advertising agency as a multiproduct firm. The firm … advertising messages which it creates on behalf of its clients. Evidence is presented indicating that the structure of demand and … costs in the advertising agency industry conforms to the conditions that MacDonald and Slivinski (1987) showed were required …

How important are economies of scale and scope in advertising agency operations? This paper reports an econometric … advertising it produces. These models are estimated and tested cross-sectionally utilizing data pertaining to the domestic … highly significant in the operations of US advertising agencies. We find that of the 12,000 establishments comprising the …