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Advertising, Imperfect Knowledge and Welfare Losses

In: Consumer Choice in the Third World

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  • Jeffrey James

Abstract

This chapter attempts to evaluate the influence of the advertising of detergents on individual choice and welfare in Barbados. First, we assess the extent to which the perceptual differences between products found in the multidimensional scaling analysis of the previous chapter can be explained by the influence of advertising. Then the welfare effects of this influence —whether they operate to the advantage or detriment of consumers — are appraised through an evaluation of the objectivity of the information that is conveyed by advertising.

Suggested Citation

  • Jeffrey James, 1983. "Advertising, Imperfect Knowledge and Welfare Losses," Palgrave Macmillan Books, in: Consumer Choice in the Third World, chapter 5, pages 80-100, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-06109-9_6
    DOI: 10.1007/978-1-349-06109-9_6
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