BORDEN, NEIL H. The Economic Effects of Advertising. Pp. xi, 988. Chicago: Richard D. Irwin Inc., 1942. $5.00

• Author: G.B. Hotchkiss
• Published date: 01 May 1942
• Date: 01 May 1942
• DOI: 10.1177/000271624222100158
• Subject Matter: Articles

218
what lower and retail prices are much
reader. The compensation is that there are
higher than would be possible with some
but two possible grounds for scientific criti-
market reforms.
cism : (1) that the facts are not sufficiently
In establishing producer prices, the old
complete; (2) that they have not been fol-
bargaining system is charged with setting
lowed to their logical conclusions.
improper class prices, which result in sub-
The author frankly admits that he has
sequent market disturbances. The other
been unable to secure all the facts he
extreme of outright government ownership
wished, and expresses doubt that adequate
is frowned upon, and the state milk control
cost figures will ever be available. How-
boards do not seem to have a very favorable
ever, he has gathered a far greater amount
record. Some hopes are held for more suc-
of factual material than has ever before
cessful operation in the markets under Fed-
been assembled.
He has had access to
eral orders. The chief requirement in the
thousands of unpublished business case his-
improvement in these orders lies in the
tories, as well as to several surveys made
incorporation of more flexibility in estab-
during the progress of the study. Statistical
lishing the prices by the adoption of some
data alone occupy 160 numbered tables and
formula which relates the fluid milk price
many smaller tabulations.
to the price of milk for manufacturing or
The author’s conclusions are so tempered
some manufactured product price.
This
by scientific caution that they are unlikely
flexibility is highly desirable, but perhaps
to be entirely welcome to either the extreme
not so easily attainable as is implied.
proponents or the extreme opponents of ad-
Among the possible methods of reducing
vertising. The reader will find none of the
spreads, the author favors the development
sweeping generalizations that have char-
of a suitable differential between the store
acterized the work of many writers who
...