It’s hard to know whether the benefits of hiring a celebrity are worth the risk. We dig into one gruesome story of an endorsement gone wrong, and find a surprising result.
SOURCES:John Cawley • , professor of economics at Cornell University. Elizabeth (Zab) Johnson • , executive director and senior fellow with the Wharton Neuroscience Initiative at the University of Pennsylvania. Alvin Roth • , professor of economics at Stanford University.
RESOURCES: • " Kanye and Adidas: Money, Misconduct and the Price of Appeasement • ," by Megan Twohey ( The New York Times, • 2023). • " The Role of Repugnance in Markets: How the Jared Fogle Scandal Affected Patronage of Subway • ," by John Cawley, Julia Eddelbuettel, Scott Cunningham, Matthew D. Eisenberg, Alan D. Mathios, and Rosemary J. Avery ( NBER Working Paper, • 2023). • " How Celebrity Status and Gaze Direction in Ads Drive Visual Attention to Shape Consumer Decisions • ," by Simone D'Ambrogio, Noah Werksman, Michael L. Platt, and Elizabeth Johnson ( Psychology & Marketing, • 2022). • " Consumer Responses to Firms’ Voluntary Disclosure of Information: Evidence from Calorie Labeling by Starbucks • ," by Rosemary Avery, John Cawley, Julia Eddelbuettel, Matthew D. Eisenberg, Charlie Mann, and Alan D. Mathios ( NBER Working Paper, • 2021). • " Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment • ," by Thomas Blake, Chris Nosko, and Steven Tadelis ( NBER Working Paper, • 2014). • " The Economics of Obesity • ," by John Cawley ( The Reporter, • 2013). • " Repugnance as a Constraint on Markets • ," by Alvin Roth ( Journal of Economic Perspectives, • 2007).
EXTRAS: • " Does Advertising Actually Work? (Part 2: Digital) • ," by Freakonomics Radio • (2020). • " Does Advertising Actually Work? (Part 1: TV) • ," by Freakonomics Radio • (2020).
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