Between Agora and Shopping Mall

33 Pages Posted: 5 Jun 2008

See all articles by Josef Falkinger

Josef Falkinger

University of Zurich - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Abstract

Advertisements provide consumers with knowledge about private products, whereas political information is required to provide voters with knowledge of public issues. Modern information technologies and globalization are increasing the exposure of individuals to information. Goods advertising is competing with political information for people's attention. This paper presents a politico-economic equilibrium model in which the tension between private and public agendas can be analysed. It is shown that in an information-rich society, international goods market integration tends to reduce the quality of public policy. Complementing economic integration with political integration can increase the gains from globalisation, though not in all cases.

Keywords: globalisation, agenda-setting, information-rich societies, scarcity of attention, advertising

JEL Classification: D83, L86, H11

Suggested Citation

Falkinger, Josef, Between Agora and Shopping Mall. IZA Discussion Paper No. 3524, Available at SSRN: https://ssrn.com/abstract=1139914 or http://dx.doi.org/10.2139/ssrn.1139914

Josef Falkinger (Contact Author)

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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