Provide an Economic Explanation for Why Many Companies Hire Celebrities

question 178

Essay

Provide an economic explanation for why many companies hire celebrities to advertise their products. Be sure to include a discussion of the possible impact of celebrity endorsements upon the price elasticity of demand and total revenue for the product being advertised.

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Definitions:

Intuitions

The ability to understand something instinctively, without the need for conscious reasoning.

Morning Morality Effect

This term describes the phenomenon where people's moral awareness and self-control are higher in the morning, and decline over the course of the day.

Virtuous Best

Suggests the highest standard of morality and ethical behavior.

Social Psychological Research

The dissection of the impact that the true, perceived, or suggested existence of others has on someone's psychological functions, sentiments, and behaviors.