consequences of omitting advertising in demand estimation an application to theatrical movies charles c moul june 2006 abstract given the di culties properly estimating presence advertis ing has often been omitted this paper uses a monte carlo experiment price and ad setters show that omission can cause substantial biases even markets with relatively low sales ratios when vertising appears be statistically insignificant i then validate appropriateness these simulations respect analysis do mestic results using actual movie data is included mimic those from context overstates impact theaters by 25 substantially understates starring cast members 80 keywords motion pictures erentiated products despite being active research area 1940s through 1960s s on resulting strategic implications not received much attention economists last thirty years lack perhaps attributed schmalensee 1972 which simultaneously provides
