According to behavioral economics, advertising works because it

A) provides useful information that improves consumers' ability to make decisions.
B) exploits the self-serving bias.
C) exploits the recognition heuristic.
D) quickly communicates price changes that exploit the law of demand.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence consumer behavior.

Behavioral Economics

explores how psychological, cognitive, emotional, cultural, and social factors affect economic decisions, challenging traditional economic theories that assume rational behavior.

Recognition Heuristic

A cognitive shortcut that involves making a decision based on the recognition of familiar names or entities instead of considering detailed information.