What can we say about the debate over the efficiency of markets in which products with brand names are sold

Question

Quizplus · Accepted Answer

The debate over the efficiency of markets in which products with brand names are sold hinges on whether consumers are rational when choosing between generic and brand name products. This is because some argue that consumers are irrational and are willing to pay more for a brand name even if a generic product could provide the same benefit. Others argue that consumers are rational and weigh the cost and benefits of a product before making a purchase decision. The role of regulation in advertising, anecdotal evidence, and advertising that identifies price differences may be related to the debate, but they are not the main factors that hinge on the efficiency of markets for branded products.

What Can We Say About the Debate Over the Efficiency