What Explains the Use of Direct‐to‐Consumer Advertising of Prescription Drugs?

Following the clarification of advertising regulation in 1997, direct‐to‐consumer advertising (DTCA) of prescription drugs has skyrocketed in the U.S., creating a controversy over the role of DTCA. Little is known, however, regarding what affects firms' advertising decisions and which drugs have been advertised to consumers. Using brand‐level advertising data, I examine the determinants of DTCA of prescription drugs. I find that drugs that are...