What is public relations to society? Toward an economically informed understanding of public relations

The notion of public relations contributing to the fabric of society is heavily contested in
the public sphere and under-researched by the academy. The authors of this paper propose
that the study of the relevance of public relations to society can be enlightened by
turning to economics. Using information asymmetry as a framework, the argument is that
public relations can be analyzed as a social institution that both helps to mitigate market
imperfections and consequently increases the efficiency with which society’s resources
are allocated as well as the chances for more market participants to derive value out of
economic transactions