Advertising pp 113-140 | Cite as

An Optimum Supply-Demand Equilibrium?

  • W. Duncan Reekie


The threads of the discussion so far will now be drawn together. The implications for the policy maker will be examined and an evaluation of possible courses of action will be made.


Fair Trading Social Optimum Green Paper Advertising Expenditure Consumer Information 
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  1. 1.
    G. S. Becker, ‘A Theory of the Allocation of Time’, Economic Journal (1965).Google Scholar
  2. 2.
    ‘Report on the Supply of Household Detergents’ (The Monopolies Commission, 1966) House of Commons Papers 105.Google Scholar
  3. 3.
    Ibid., p. 44, para 125.Google Scholar
  4. 4.
    ‘ … competition is restricted to the field of advertising and promotion. This not only results in wasteful expenditure but also deters potential competitors who might, otherwise, provide a safeguard against excessive profits … If competition can be diverted from excessive advertising and promotion to prices, we believe that the result will be not only a saving in cost but also a more effective check upon profits.’ Ibid., p. 43, para 121.Google Scholar
  5. 5.
    Polanyi, op. cit., p. 25.Google Scholar
  6. 6.
    Ibid., pp. 40–2.Google Scholar
  7. 7.
    ‘It is difficult to see any reason, other than that the terms of entry are too onerous, why this profitable field should, with the exception of liquid detergents, have been left largely in the hands of the two companies … We are indeed a little surprised that multiple stores which market their own brands of liquid detergents do not as a rule market their own brands of powders.’ House of Commons Papers 105, op. cit. p. 36, para 104. (my italics).Google Scholar
  8. 8.
    Advertising, Opposition Green Paper (The Labour Party, 1972), p. 56.Google Scholar
  9. 9.
    Ibid., p. 15.Google Scholar
  10. 10.
    J. Schumpter, Capitalism, Socialism and Democracy (New York: Harper, 1950) p. 88.Google Scholar
  11. 11.
    Ibid., p.84.Google Scholar
  12. 12.
    J. L. Simon, Issues in the Economics of Advertising (University of Illinois Press, 1970) pp. 279–80.Google Scholar
  13. 13.
    Opposition Green Paper, op. cit., p. 55.Google Scholar
  14. 14.
    Cited from the Daily Telegraph, 7 Aug 1972.Google Scholar
  15. 15.
    Taplin, op. cit., p. 111.Google Scholar
  16. 16.
    D. Tarschys, ‘The Demanding Consumer: Developments in Sweden’, Advertising Quarterly, No. 28 (Summer 1971) 15.Google Scholar
  17. 17.
    Y. Brozen, ‘The FTC and “Trial by Publicity”’,Advertising Quarterly No. 31 (Spring, 1972) 26–7.Google Scholar
  18. 18.
    Tarschys, op. cit., p. 20.Google Scholar
  19. 19.
    Economists’ Advisory Group, p. 78.Google Scholar
  20. 20.
    Ibid., p. 77.Google Scholar
  21. 21.
    Ibid., p. 81.Google Scholar
  22. 22.
    Opposition Green Paper, op. cit., p. 3.Google Scholar
  23. 23.
    Which (Mar 1972) 66.Google Scholar
  24. 24.
    Opposition Green Paper, op. cit., p. 8.Google Scholar
  25. 25.
    Cited from The Financial Times, 16th July, 1973.Google Scholar

Copyright information

© W. Duncan Reekie 1974

Authors and Affiliations

  • W. Duncan Reekie
    • 1
  1. 1.Department of Business StudiesUniversity of EdinburghUK

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