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its a simple question answered by sociologists not economists. advertising creates a barrier to enter a market, not the market. when you spend on ads, you are
by najsudhsis 4y ago
its a simple question answered by sociologists not economists.
advertising creates a barrier to enter a market, not the market.
when you spend on ads, you are not creating new market for you, you are just unlocking some of the reserve market the established leaders secure via misinformation and brand brainwashing.
- huitzitziltzin 4y agoWe have been considering that possibility in the literature on the economics of advertising since the 1950’s or 1960’s, if not earlier. If you want a survey of this and other early ideas in the literature, see Kyle Bagwell’s contribution to the handbook of industrial organization, vol 3 (2007 or so).
- echelon 4y agoI know this is a terrible imposition, but would you mind summarizing the conclusions of this comment and your previous comment with regard to the measurements done in literature? This is hard to follow for those of us not in academia with access to journals. Or time to figure out how to hunt these sources down. I feel like your comments contain pointers to deep quantitative insights.