In 2010, newspapers reported that Lavazza coffee paid the actress Julia Roberts around $1.5 million for an

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In 2010, newspapers reported that Lavazza coffee paid the actress Julia Roberts around

$1.5 million for an Italian advertisement where she drank a cup of coffee, smiled, but said nothing. This was a payment of around $33 000 per second. Why would Lavazza pay Ms Roberts such a high amount for an advertisement? Can such a payment be consistent with rational consumer behaviour? Do you think that this payment is justified?

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Principles Of Microeconomics [Australia And New Zealand Edition]

ISBN: 9781337408066

6th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N. Gregory Mankiw

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