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Consumer sovereignty in the digital society

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  • Alexandre Chirat

Abstract

Do uses of digital technologies in the framework of early 21st century capitalism promote or reduce the expression of consumer sovereignty ? This paper addresses this question through the lens of John Kenneth Galbraith’s theory of consumption. First, I recall the main stakes of his theory. Second, I highlight the main differences between traditional advertising and online behavioral advertising. Third, I explain how online behavioral advertising strengthens the “dependence effect†and “revised sequence†depicted by Galbraith within the context of the industrial society. Fourth, I discuss some normative challenges raised by digital platform corporations to individual sovereignty. Lastly, I argue that platform capitalism appear as a mature form of the “new industrial state†, one important difference being that digital platform corporations, rather than traditional industrial corporations, largely preside over the allocation of resources in the economy.

Suggested Citation

  • Alexandre Chirat, 2022. "Consumer sovereignty in the digital society," EconomiX Working Papers 2022-25, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2022-25
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    References listed on IDEAS

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    More about this item

    Keywords

    Consumer sovereignty – online behavioral advertising - digital economics – platform capitalism;

    JEL classification:

    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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