|Author:||Mgr. Jiří Pokorný|
|Year:||2013 - winter|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This thesis denes advertising very broadly - as any information that form
consumers such that they change their consumption. Microeconomic models
assume that consumers choose their consumption independently, and do not
take into account that their wants can be changed due to actions of other
market participants, which this thesis criticizes. Advertising is modelled with
the Cobb-Douglas function as a good that is complementary to the good that
is advertised. The models show that advertising decreases the total welfare
only in some cases. If it is protable for a rm to advertise, its production
usually increases the total welfare.