I think that advertising do make markets more competitive.
How?
If one company advertises a product for a lower price than its competitor that drives the competitor to lower their cost for the same product. The example in our book talks about the cost of eye glasses in states that allow advertising being lower rather than in states that do not allow advertising. From this example I feel that advertising is a benefit to consumers because it drives down the cost when companies are competing for consumers to purchase their product. I am a firm advocate for consumer awareness though and people should educate themselves about their purchases and whom they are purchasing from.
What was the most interesting thing you learned in this chapter?
Brand Names.
Why was it interesting to you?
As a consumer, I would have to disagree with the critics of Brand Names. My example would be to compare Pepsi to store brand Cola. Yes, I have purchased both and there is no comparison when it comes to flavor. therefore I prefer a Pepsi over Cola even if it does cost more. I would have to agree with the economists that defend brand names and their quality. I'm thinking of the saying "you get what you pay for."
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