Examining market organization from a veblenian perspective: A reading on the Turkish advertising market

Today's mainstream economic policy is largely based on Neoclassical Economics. However, beyond theoretical models, the limitations of the school in explaining real-world economic events led to a search for a more comprehensive framework. One result of this search was the Institutional Economics approach, which focuses on the role of institutions in economic performance. This school has brought economists working in this field to the forefront in academic environments. This interest has not been unjustified in academic circles, with several Nobel Prizes awarded to those who research related themes. Institutional Economics, while giving special importance to the market, offers a different perspective on its role. This study will first examine Institutional Economics and then examine the unique interpretation of the advertising market within the framework of this school with the Veblenian view that best reflects the Institutional Economics perspective. The advertising market has grown significantly with the mass media affecting consumption patterns and the development of capitalism. This study will examine how this market works by examining both mainstream economic and Institutional Economics perspectives. Within the context, there is a central contradiction that lies in Neoclassical Economics' preference for perfect competition, which sees advertising as unnecessary, even harmful to competition, under the assumption of perfect information. However, in practice, advertising has developed under a global market economy influenced by Neoclassical principles and supported by multinational corporations and harmonious business practices. The thesis will also investigate this contradiction and the reasons for the important role of advertising in the modern market. In the study, the structure of the Turkish advertising market, its estimated size, the main factors that drive the market and their outlook within the near future will be analyzed from the Institutional perspective of Veblen. Ethical concerns that are often neglected during the rapid growth of the sector and recent changes in the sector will be emphasized. Issues such as ethical compliance and conflicts in advertising will be examined, drawing attention to the moral and business ethics debates affecting market rules and institutions. This section will also address different views on the impact of advertising on economic performance. The thesis will also briefly discuss how Veblenian Institutional Economics analysis tools can improve the understanding of advertising market organization and performance. The study will examine both global and Turkish advertising markets by the aid of related supporting data. It will assess the characteristics that may hinder profitability and economic growth, especially for small firms with limited advertising budgets, and will conclude with some advice that will suggest ways to address potential problems in terms of consumption. The methodology that our thesis will follow is a case report based on literature review.