This study provides an empirical analysis of the effects of advertising and commercial practice on the price and quality of optometrists’ services. Data were collected by actually purchasing eye examinations and eyeglasses from optometrists in cities with and without restrictions on advertising and commercial practice. Analysis of the data supports the view that advertising and commercial practice lower prices but do not lower the quality of professional care available in the market. The implications of these findings are discussed.
Ronald S. Bond, John E. Kwoka Jr., John J. Phelan, and Ira Taylor
Loading...