The Economic Analysis of Advertising

In this section, Bagwell does discuss several implications of the new media and advertising in short detail however the majority of this article is related to conveying theoretical grounds for advertising and providing some fundamental aspects of advertising in relation to economics. Theories described cover pricing strategies, monopolies, product differentiation and quality. This essay serves as a great start for learning about the economy and advertising.

 Bagwell, K. (2007). Chapter 28 the economic analysis of advertising. In M. Armstrong and R. Porter (Ed.), Handbook of industrial organization, (pp. 1701-1844)Elsevier.