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>Also what prevents one or a few companies from being very successful with their advertisement, becoming a oligopoly or even a monopoly and then inflating the p
by pb7 6y ago
>Also what prevents one or a few companies from being very successful with their advertisement, becoming a oligopoly or even a monopoly and then inflating the price for more profit and to the disadvantage of the consumers?
I think this is just as muddy as the bits you pointed out. Incumbents don't need to advertise but new players do and they have a better chance to gain market share with targeted advertising due to more effective use of their often limited budgets.
- danbruc 6y agoI think this is just as muddy as the bits you pointed out. You are of course right, I only wanted to given some scenario with opposite outcome for customers. My point was more that one will have to provide much better arguments or evidence than some random macroeconomic interaction to convince me that advertising has any net positive effect.