What makes the current system suboptimal? I mean, the markets are Dutch auctions, which penalize overvaluation. Compared to my youth, I'm definitely exposed to far less advertizing.
If advertising truly is an arms race, then the cost is money and effort wasted on keeping up with the competition -- building an excess of supply because you lose if you can't keep up.
Of course there are also plenty of opportunity costs to wasting billions annually on the overpromotion of overpriced products that are consumed in excess...
Of course there are also plenty of opportunity costs to wasting billions annually on the overpromotion of overpriced products that are consumed in excess...