00:01    |    
Opening credits
00:20    |    
Introduction
01:32.5    |    
Israel Kirzner: Consumer Sovereignty and the Role of Advertising
01:47    |    
Consumer sovereignty
The consumer is king
03:25    |    
Critics to the market economy
Objections to advertising
Advertising is offensive
Advertising is deceitful
Advertising persuades consumers to buy
Advertising creates monopoly
Advertising is wasteful
08:43    |    
The role of advertising
Provision of information
Consumers' search of information
Cost of information
Neoclassical defense of advertising
Reasons for advertising
Why should producers produce the wrong commodity? Mistakes of the producers Example: Producing brown shoes
Two views of the consumer Mainstream economics viewDoctrine of consumer sovereignty
20:6.5    |    
Consumer preferences
Example: Demand of gloves
Sequence of producer-consumer
Producer anticipation to what the consumer wants
Producer's faithful service to the consumer
Dangers of production anticipation
Consumer sovereignty in advertising
Determining what the producer must produce
27:10    |    
Relationship between producer anticipation and advertising
Advertising as a way to grab consumers' attention
Showing the consumers what they want
Entrepreneurial task
Persuasion and anticipation
Active production anticipating the demand
34:52    |    
Edward Chamberlain's distinction
Two kinds of costs
Production costs
Selling costs
Theory of Monopolistic Competition
36:28    |    
Ludwig von Mises' argument against Chamberlain's distinction
Every production cost is a selling cost
Every selling cost is a production cost
Subjectivism
Example: Cosmetics market
42:23    |    
Defense to objections to advertising
Advertising is offensive
Consumers getting what they want
Advertising is deceitful
Consumers' ability to decide
Advertising is persuasive
Educational nature of advertising
Advertising creates monopoly
Freedom of entry to the advertising business
Advertising is wasteful
Transformation of the product
Conclusions
51:49    |    
Final credits



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Consumer Sovereignty and the Role of Advertising

21 de agosto de 1996   | Vistas: 4240 |  

Israel Kirzner is a well-known economics professor who illustrates the importance of advertising in a supposedly consumer-driven society. Consumer sovereignty is often thought to be imperative, but as Kirzner mentions, the producer anticipates what the consumer wants. Throughout this lecture, he explains that advertising and the sequence of producers and consumers play an important role in the market economy. 

 

 

 


Israel Kirzner is a leading economist of the Austrian School of Economics. He is professor emeritus of economics at New…

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