>Google ads is a local optima for companies but not for consumers.
Are you sure you don't have it reversed? Companies would be quite happy if they could enter into some sort of no advertising pact so they don't have to spend any money on ads at all.
>The trouble is, for Google, the customers are the companies buying ads, not the people browsing the web. It's a classic example of not paying for your externalities
No, it's fully internalized, because consumers are getting free content (ie. sites where the ads are placed) and services (eg. gmail) in exchange. I'd be far more sympathetic to your claims of "externalities" if google stuffed its ads into your computer like junk mail makes its way into your mailbox.
> Are you sure you don't have it reversed? Companies would be quite happy if they could enter into some sort of no advertising pact so they don't have to spend any money on ads at all.
That's why it's a local optimum. Any company that try to unilaterally leave advertising will be punished. The global optimum would be no advertising at all, of course.
Anyway the people are already fighting back. I block ads everywhere, at least.
Are you sure you don't have it reversed? Companies would be quite happy if they could enter into some sort of no advertising pact so they don't have to spend any money on ads at all.
>The trouble is, for Google, the customers are the companies buying ads, not the people browsing the web. It's a classic example of not paying for your externalities
No, it's fully internalized, because consumers are getting free content (ie. sites where the ads are placed) and services (eg. gmail) in exchange. I'd be far more sympathetic to your claims of "externalities" if google stuffed its ads into your computer like junk mail makes its way into your mailbox.