Economics Of Advertising

Advertising is a hugely influential part of society and business yet it is never mentioned in traditional economics. In neo-classical economics, firms do not advertise. This is not a trivial omission because advertising has an enormous effect on the market. Roughly $500 billion dollars was spent on advertising in 2011. Nor is its omission a simple mistake. Rather it is deliberate because once you examine advertising, you see what an enormous distorter of the market it is. Continue reading “Economics Of Advertising”

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