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sunk cost signalling

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    Market Signals Entry #0404

    The reason a company that advertises must be solvent

    The advertisement does not persuade because of what it says. It persuades because spending visibly on something that could fail is proof that failure is not expected.

    Adept
    The hidden part #0404

    Spend implies expected future revenue. The advertisement’s most persuasive argument is not what it says but how much it cost.

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