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The need for advertising arises from having substitute goods on imperfect markets. If consumers knew the perfect good or service that they wanted to buy and ex
by bduerst 7y ago
The need for advertising arises from having substitute goods on imperfect markets.
If consumers knew the perfect good or service that they wanted to buy and exactly whom to buy it from, there wouldn't be a need for advertising. As it is now, information asymmetry creates a demand for advertising, so until people know everything about every market, you're going to have ads.