Vance Packard attacked this activity in a book that repeated the false story of a movie theater flashing pictures of popcorn on the screen in The Hidden Persuaders, and J.K. Galbraith said that this activity "manufactures demand."
A 1971 paper by Peter Diamond showed that there's no reason for this activity to exist in the general equilibrium of a model of costly search, contrary to Stigler. Phillip Nelson argued the cost of this activity serves as a signaling mechanism, explaining why it is more commonly used for experience goods than search goods. Another theory of this activity argues that it serves as a complementary good through "prestige effects;" that approach was developed by Becker and Murphy. The (*) "Torches of Freedom" campaign was an attempt by Edward Bernays to apply Freudian theories to this activity. Vance Packard attacked this activity in a book that repeated the false story of a movie theater flashing pictures of popcorn on the screen in The Hidden Persuaders, and J.K. Galbraith said that this activity "manufactures demand." For 10 points, name this activity done to encourage consumers to buy a product.
A 1971 paper by Peter Diamond showed that there's no reason for this activity to exist in the general equilibrium of a model of costly search, contrary to Stigler.
advertising (accept word forms; prompt on "marketing," "public relations," "propaganda," and similar. Accept "price dispersion" and equivalents before "Phillip")