Advertising and information costs: an empirical study

Abstract

As pointed out previously by economists, the implicit demand for cost‐saving information by potential buyers generates a derived demand for advertising by sellers. This study adds to the body of evidence that reveals the positive role of advertising in the market process. The evidence presented here suggests that sellers do respond to the higher time costs faced by transient populations by providing advertising qua information in a manner that minimizes the total cost of voluntary exchange.

Citation

Mixon, F.G. (1998), "Advertising and information costs: an empirical study", International Journal of Social Economics, Vol. 25 No. 9, pp. 1334-1341. https://doi.org/10.1108/03068299810213945