The neoclassical mainstream approach to advertising is microeconomic, beginning with the model of perfect competition and analyzing firm's or consumer's behaviour within it. Beside, showing contradictions in neoclassical approach, the paper attempts to identify macroeconomic foundations of advertising in the Keynesian economic theory. Although Keynes did not show interest for advertising, Nicholas Kaldor, a Keynesian economist,offered an alternative to neoclassical microeconomic explanation of advertising. Kaldor's Keynesian macroeconomic theory of advertising based on the rejection of Say's law is also a starting point for the Post Keynesian microeconomic theory of advertising, especially regarding price theory and the theory of competition.
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