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It's somewhere in the middle, depending on how elastic demand for the thing being peddled is. If you're talking about something like Coca-Cola, where each ad e
by bunderbunder 8y ago
It's somewhere in the middle, depending on how elastic demand for the thing being peddled is.
If you're talking about something like Coca-Cola, where each ad exposure might prompt someone who already has a fridge full of Coke to go grab a can right now, then yeah, that is very much true.
If you're talking about something like prescription pharmaceuticals, where demand is tightly constrained by how many people actually have the condition your drug treats and what doctors are prescribing, then I would bet the GP is correct. Then I'd expect advertising for competing drugs to behave more like a prisoner's dilemma.
- ekianjo 8y agoprescription drugs are only advertised in the US so in the grand scheme of things its a minor market for ads.
- bunderbunder 8y agoThey are. And the US also has famously high prescription drug prices. I'm not certain that the two are related, but it certainly seems plausible.
- adventured 8y agoIt makes a lot more sense that that would directly tie to the US healthcare system approach and how it prices products & services rather than more to the ad market impact. Everything in the US healthcare market is similarly far more expensive. From radiologist salaries, to a bag of saline, to hospital stays. You could cut pharma prices in the US in half through increased negotiating power, imported drugs and government price restrictions for Medicare/Medicaid and still have a very large industry full of advertising.