Consumer surplus and advertising revenue
29 نوفمبر 2021 2021-11-25 20:52Consumer surplus and advertising revenue
Do you agree with the following statement and why?
There is a direct relationship between consumer surplus and advertising revenue, so many ads appear in popular digital services
Question is closed for new answers.
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I disagree:
In general advertising revenue and consumer surplus need not be correlated with each other since platform might earn the same advertising revenue from two user while one of them might value it much higher than the other
One might argue that the value generated by Facebook is reflected in its advertising however. research indicates that Facebook generated over 500 of consumers surplus per year for the average user and average revenue per user is only 140 per year in us and advertising revenue are only fraction of total consumer surplus
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