Difficulty to Eliminate the Crux Problems with Illegal Advertising via the Advertising Management: An Information Economics Framework

The advertising industry is one of the fastest growing industries after China´s reform and opening up. The phenomenon of illegal advertisements in advertising industry has been growing show the impact of the normal order. To seek treatment strategy, first of all, we have to understand the root causes of it. From the special perspective of information economics, we analyzed the causes of illegal advertisements. We think, information goods attribute of advertising, ´illegal advertisement lemon´, ´sub-adverse selection´ and ´sub-moral hazard´, optimal individual rational choice, externality theory of information networked, all these are major reasons for illegal advertising.