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The Internet has evolved from Web 1.0, with static web pages and limited interactivity, to Web 2.0, with dynamic content that relies on user engagement. This change increased production costs significantly, but the price charged for Internet content has generally remained the same: zero. Because...
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It is sometimes argued that more advertising raises consumption which in turn stimulates output and so economic growth … advertising does not Granger-cause growth but Granger-causes consumption. Consumption, in turn, Granger-causes GDP growth. The … data imply that the immediate impact of more advertising on consumption is positive. However, the long-run effect is …
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because of the resources diverted away from R and D into advertising. But these mechanisms generate opposite level effects on …
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