Transcript
  • 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
    • 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?
      • Example: Producing brown shoes
      • Two views of the consumer
        • Mainstream economics view
        • Doctrine 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


Consumer Sovereignty and the Role of Advertising

New Media  | 21 de agosto de 1996  | Vistas: 6417

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. 

 

 

 


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Israel Kirzner is a leading economist of the Austrian School of…

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Universidad Francisco Marroquín