Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I think I once read that economists had much difficulties in putting advertising in their models, as following advertising makes little "rational" sense.

One of the problems when debunking utilitarianism in economical discourse is that it is easy to make sophistry with the concept ; essentially any behaviour can be made to look like rational maximisation of an utility function. (for various meanings of rational, maximisation, utility and function).

The fact that most exchanges are regarded as demand and consumption is one of the damage done to society by the Great Transformation, too. I don't "consume medical service", I have a social relationship with a doctor that tries to keep me healthy. Yet the extreme monetisation of these kind of exchanges, as they must fit in the greater economic schemes, makes the social part had to maintain.

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Fri Jul 6th, 2007 at 06:48:24 PM EST
[ Parent ]
Yes, advertising is a big part of it. In terms of the putative "closed" economic model, one could "predict" that demand needs to be boosted via advertising, but the back-reaction of the advertising spending will be difficult to model.

Can the last politician to go out the revolving door please turn the lights off?
by Migeru (migeru at eurotrib dot com) on Fri Jul 6th, 2007 at 07:20:50 PM EST
[ Parent ]


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