Tom and Donna are doing one last Treat Yo Self journey before Donna’s wedding. As the Butler of Honor, Tom takes Donna to eat at the hottest sushi restaurant in LA. All of the fish served has been previously owned by celebrities as a way to differentiate it from standard sushi.
See more: advertising, celebrity endorsement, monopolistic competition, product differentiation
Donna and Tom are curious about what the newest fad is in Pawnee. Annabel Porter tells Ron, Donna, and Tom about milk with a flourish that makes it worth $60 a gallon instead of $3 a gallon. Ron isn’t fooled, he realizes it’s just milk.
See more: advertising, demand shifts, monopolistic competition, preferences, product differentiation
Gryzzl wants to bring in a celebrity to help distinguish the company so that they can win the bid. Tom and Donna list other instances where celebrity ownership or endorsement have helped companies. Celebrity endorsements may serve as a signalling device for companies.
See more: advertising, celebrity endorsement, monopolistic competition, product differentiation, signalling
Ron won’t endorse a product unless he uses it exclusively and actually believe in it. Firms in imperfect markets often use celebrity advertising because it serves as a signal that the person selling the product actually believes in the product.
See more: advertising, monopolistic competition, product differentiation
Economics of Parks & Recreation 