[aeternus]

And how do you measure social utility? Price is currently the best measure of 'social utility' that we have.

People choose to spend their hard-earned dollars on the products that provide the most utility. Companies spend their hard-earned dollars on the vehicles that allow them to sell the most product.

[tsimionescu]

But advertising is explicitly designed to skew that measure - the purpose of essentially all advertising, and certainly all of Coke/Pepsi's advertising, is to convince people that they need something that they don't need; and to make them appeal to their feelings instead of their rationality when doing purchasing decisions (e.g. by inspiring brand loyalty).

[logfromblammo]

That's the problem with saying Coke shouldn't buy so many ads. Coke got all their ad spend from people who gave them money in exchange for Coke's products.

Coke is rich because society likes drinking Coca-Cola and pals.