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You're missing an important nuance. The best advertisement is for a product that, in expectation, makes the most money from me. My relative interest is still im
by pxx 3y ago
You're missing an important nuance. The best advertisement is for a product that, in expectation, makes the most money from me. My relative interest is still important, and you can't just jump from the fact that somebody is making money to the unfounded claim that the "expected utility is negative."
When I buy an item I'm making a decision that the marginal value of that item to me is worth more than the marginal cost. If the ad is targeted, a transaction is more likely to happen. Transactions happen when both parties derive utility from them.
If you advertise only high profit items without concern for the probability of transaction, your audience will not buy anything or end up buying the same item from somebody else.
- deleted 3y ago[deleted]
- hibernator149 3y agoYou assume that they value longterm profits over shortterm ones.
- ndriscoll 3y agoIt's not just that someone is making money. It's not a friendly old man at the local bookstore giving you recommendations based on your tastes. It's a system where all of the battery vendors are bidding in real time to be the one you see, and the most dodgy one with the best margins is the one that can place the best bid, causing you to get the worst possible deal. These systems are not for your benefit. They are meant to use any information they can to extract more from you.
- mrighele 3y agoAs a customer, you will try of course to get the best deal. The best deal for you is the worst for them, so the target of advertising is convincing you that you are getting the best deal while actually giving you the worst possible. Targeted advertising is not giving you better deals, but providing you with a greater mismatch between your expectation and the reality. You may get a better deal out of it, but that is an unintended side effect
- deleted 3y ago[deleted]