Consumer Sovereignty

Consumer sovereign consumer sovereignty is the determination of the type and quantity of goods and services that consumers create from the economy. But in today's society, does this "sovereignty" really exist? When I reach agreement with John Kenneth Galbraith, I do not think so. This is because in today's world advertising plays a very important role in the daily life of consumers. The concept of advertising is simple: its core function is to create a desire. In the process of creating these desires, consumers' sovereignty which enjoyed luxurious enjoyment was denied.

The introduction of the terms "consumer sovereignty" and "individual sovereignty" is an example of slowly introducing a few terms into economics (Hutt, 1940). Sovereignty is the political power that people can express and execute. It is related to national violence. From an economic point of view, we can not have sovereignty over the exchange completed by other parties. Furthermore, without national intervention, individuals and businesses can not force consumers and producers to trade. Maximization of utility by subjective basis transaction based on individual psychometric evaluation is done subjectively by each party. The introduction of oligopoly and monopoly systems into general areas of economics, and elimination of state intervention in the presence of such systems is a national reason for intervention.

Bourgas' definition is consistent with Carl Menger, the founder of Austrian economics, in the vision of consumer sovereignty (the principle of economics in 1871) where consumer preferences, evaluation and selection dominate the economy completely It is. (This concept is the opposite of Marxist viewpoint development system for capitalist economy). Consumer society appeared in the second half of the 17th century and was strengthened through the 18th century. Some people argue that the change is due to the expansion of the middle class, but they accept new ideas about consumption of luxury goods and the growing importance of fashion as an arbitrator for purchasing rather than necessities. Political and economic necessities Capitalist market Competition between market and profit, among others

Consumer sovereignty is the freedom to spend to gain more satisfaction. This phenomenon reflects the ideal of capitalist producers who use resources in such a way as to force competitors to meet consumer demand. If this concept is true, producers will not be able to manage the products they produce. This will make the industry ineffective and will decide what to do and how much to do. In the mid-20th century, John Kenneth Galbraith criticized this concept of consumer sovereignty in his article "No responsibility for reliable effect". These two have different views on consumer sovereignty.