Critics of markets that are characterised by firms that sell brand-name products argue that brand names encourage consumers to pay more for branded products that:

Question

Quizplus · Accepted Answer

The argument is that brand names encourage consumers to pay more for products that are indistinguishable from generic products. This suggests that the products are not very different, and thus consumers are essentially paying for the brand name and not for any real difference in quality or performance.

Critics of Markets That Are Characterised by Firms That Sell