MadMen and the Market Process

|Peter Boettke|

No, I am not going to play TV critic.  But instead just point to a recent paper by Rachel and Chris Coyne dealing with the economics of advertising.  The Coynes expose the arguments often provided to criticize the social inefficiencies and wastefulness of advertising as fallacious by walking through the theory and evidence of that matter.

F. A. Hayek in 1961 challenged the then dominant critique of advertising offered by John Kenneth Galbraith in his "Non-Sequitur of the Dependence Effect", and Israel Kirzner wrote forcefully about the role that advertising plays in the competitive market process in several articles and books.  Well, add this piece by Rachel and Chris to the list you hand out to your students to discuss the economics of advertising.

Comments

[liberty]

I also discuss the role of advertising in the competitive process and its inevitable use, even by the state in a socialist system, in my book Rediscovering Fire.

Glad to see the topic being addressed by as clever and wise minds as the Coynes.

[Andrew_M_Garland]

http://www.brainyquote.com/quotes/quotes/w/williamber103263.html

William Bernbach was a founder in 1949 of the famous international advertising agency Doyle Dane Bernbach (DDB):

"A great ad campaign will make a bad product fail faster. It will get more people to know it's bad."

[johncosta]

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