If some consumers think that two detergents have differing qualities, such as brand-name vs. private label detergents, wheres other consumers know that the detergents are identical, then the detergent producer can

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The producer can engage in a special type of price discrimination known as non-uniform pricing. By charging a higher price for the brand-name detergent that some consumers perceive to be of higher quality, and a lower price for the identical private label detergent, the producer can capture additional revenue from the consumers who are willing to pay more, while also satisfying the price sensitivity of other consumers who are aware of the similarity between the two products. This allows the producer to segment the market and capture more of the consumer surplus.

If Some Consumers Think That Two Detergents Have Differing Qualities