Targeted Advertising: The Modern Lemons Market

Folakunmi Pinheiro
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Abstract

Free online content and services are increasingly important to our private, public, and professional lives. The business model which supports these services is the targeted advertising model and it has been hotly debated. However, the debate—which has largely focused on the consumer welfare benefits or lack thereof of the business model—is yet to come to a definitive conclusion on whether the business model should be regulated or not. In this article, I argue that, at present, it is not possible to determine whether targeted advertising increases consumer welfare or not. Nevertheless, I also argue that there is still a ground for regulating targeted advertising—through correcting the information asymmetry that exists between consumers and online platforms.
目标广告:现代柠檬市场
免费的在线内容和服务对我们的私人、公共和职业生活越来越重要。支持这些服务的商业模式是目标广告模式,这一模式一直备受争议。然而,争论——主要集中在消费者的福利利益或商业模式的缺乏——尚未得出一个明确的结论,即商业模式是否应该受到监管。在这篇文章中,我认为,目前还无法确定定向广告是否增加了消费者的福利。然而,我也认为,通过纠正消费者和在线平台之间存在的信息不对称,仍然有规范定向广告的理由。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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