Abstract
Empirical studies suggest that advertising is not an important determinant of consumer behaviour and that advertising follows rather than leads cultural trends. On the core issue of whether advertising is anti- or pro-competitive, the evidence suggests that advertising is associated with lower prices.
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Bibliographic Addendum
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Schmalensee, R. (2018). Advertising. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_354
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DOI: https://doi.org/10.1057/978-1-349-95189-5_354
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