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Advertising Without Signal: The Rise of the Grifter Equilibrium
Economists credit ads with two welfare‑enhancing roles:
1. Informative – trimming search costs (Stigler 1961 (pdf)).
2. Signaling – In classic models, high-quality sellers are more willing to incur large, sunk ad costs because they expect to recoup them…
1. Informative – trimming search costs (Stigler 1961 (pdf)).
2. Signaling – In classic models, high-quality sellers are more willing to incur large, sunk ad costs because they expect to recoup them…
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Hacker News
Advertising Without Signal: The Rise of the Grifter Equilibrium Article, Comments
Hegel would've loved Oatly!™
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