Coordination economies, advertising, and search behaviour in retail markets by Kyle Bagwell and Garey Ramey: a comment

Discusses Bagwell and Ramey’s theory that advertising can promote sales even if mostly informative. Posits there must be method in what would perhaps seem to be the madness of customers railing against firms’ lack of communication. Highlights the various slogans employed via jingles, etc. Criticises the analysis by Bagwell and Ramey and shows how their overall explanation fails.