Do consumers benefit of advertising?

Up until now I’ve been talking about the price that advertisements make people pay in exchange for information. I’ve also argued that this price is much higher than the fair value of the information. Some researchers along with some advertising fans (mostly those who make a living of it) explain this anomaly by some […]

Private costs of advertising

I’ve mentioned two types of costs caused to the consumers by advertising: public and private. In my previous posts I’ve extensively discussed the public costs that are embodied in the product’s price and paid at the occasion of a purchase. These costs are called public since all of the consumers must pay them, regardless […]

Why do we choose to pay more?

Previously I’ve claimed that advertising is an expensive and unfair way to pay for information. Nevertheless, it’s still a very popular currency that is constantly being used in order to acquire various types of content. The explanation to this situation is the absence of choice. Consumers are compelled to pay for advertisements while purchasing […]