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The Economic Analysis of Advertising

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  • Kyle Bagwell

    ()
    (Columbia University - Department of Economics)

Abstract

By its very nature, advertising is a prominent feature of economic life. Advertising reaches consumers through their TV sets, radios, newspapers, magazines, mailboxes, computers and more. Not surprisingly, the associated advertising expenditures can be huge. For example, Advertising Age (2005) reports that, in 2003 in the U.S., General Motors spent $3.43 billion to advertise its cars and trucks; Procter and Gamble devoted $3.32 billion to the advertisement of its detergents and cosmetics; and Pfizer incurred a $2.84 billion dollar advertising expense for its drugs. Advertising is big business indeed.

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Bibliographic Info

Paper provided by Columbia University, Department of Economics in its series Discussion Papers with number 0506-01.

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Length: 182 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:clu:wpaper:0506-01

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