Advertising and the Theory of the Firm
For many years writers argued that advertising was both informative and persuasive. This was in the Marshall-Pigovian tradition. In 1974, however, Professor Phillip Nelson1 wrote an article claiming that advertising was simply information, and that all advertising’s major features could be understood in terms of the information function.
KeywordsManifold Income Expense Posit Dition
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Notes and References
- 2.Phillip Nelson, ‘Advertising as Information’, Journal of Political Economy (1974).Google Scholar
- 2.Nicholas Kaldor, ‘The Economic Aspects of Advertising’, Review of Economic Studies (1950).Google Scholar
- 3.Lester Telser, ‘Supply and Demand for Advertising Messages’, American Economic Review (1966).Google Scholar
- 4.Edward H. Chamberlain, The Theory of Monopolistic Competition (Harvard 1960) pp. 118–20 and p. 172.Google Scholar
- 5.Joan Robinson, The Economics of Imperfect Competition (Macmillan, 1933) pp. 90 and 101.Google Scholar
- 8.Yale Brozen, Advertising and Society (New York University Press, 1974) p. 101.Google Scholar