The Relationship between Market Structure and Advertising Intensity in Iranian Manufacturing Sector

The purpose of this article was to evaluate the relationship between the degree of concentration as a structural variable and advertising as a behavioral variable in Iran's  manufacturing sector. For this purpose, data related to ISIC 4-digit activities of Iran's manufacturing sector for the period  1375-1392  was used. While  using panel data and fixed effects method, the inverse U relationship between concentration and advertising in manufacturing markets was tested. The results indicated that there was an inverse U relationship between concentration and intensity of advertising in Iran's manufacturing industries. In addition, the findings of this study showed that size of market and profit margins had a negative significant effect on the intensity of advertising. During the period under review, the highest intensity of advertisements occurred in "soap and detergents and sanitary ware and cleaning and perfumes and cosmetics" ;  "motor vehicles" and  "home appliances" industries.