In regard to industrywide advertising, creating small groups of participating firms increases the opportunity for free- riding.

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Industrywide advertising typically involves a collective effort from many firms within an industry to promote the industry as a whole, rather than individual brands. When small groups of firms participate, it reduces the opportunity for free-riding because each firm's contribution is more significant and noticeable, making it harder for firms to benefit without contributing.

In Regard to Industrywide Advertising, Creating Small Groups of Participating