Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 7

ANALYZING MANAGERIAL DECISIONS: Favoring a Government Ban on Advertising
Cigarette manufacturers were among the first companies to advertise extensively on television. Older people today can still hum the heavily televised jingle, "Winston tastes good like a cigarette should," and recall the Old Gold Dancing Cigarette Pack-an oversized dancing cigarette package with shapely female legs. They can also remember beautiful women with black eyes as they testified that "Tareyton smokers would rather fight than switch." John Wayne and other movie stars appeared in commercials to endorse cigarettes. Cigarette companies were the major sponsors for many popular television shows. The companies also paid to have cigarettes included in the actual programs. In 1962, the cartoon characters Fred and Wilma Flintstone were shown smoking Winston cigarettes.
The U.S. federal Government banned television advertising of cigarettes starting in 1971. Interestingly the ban was supported by the leading cigarette manufacturing companies even though they had advertised heavily on television since the 1940s.
Can you conclude from your example that all firms in all industries will favor bans on television advertising Explain. Can you ever envision a situation where one firm might favor the ban and a competing firm might be against it Discuss.