Unveiling the Power of Advertising: How Information Shapes Market Dynamics
The article discusses how advertising helps companies share information with consumers in markets. It looks at different reasons why firms use advertising and how it affects consumers. The researchers explore how advertising can give direct product details, signal quality, or help coordinate choices. They also consider how advertising costs, targeting, and information overload impact consumers. Additionally, the article suggests that advertising can influence consumer preferences and build goodwill for products over time.