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Title : The Companionship Called Brandless
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The Companionship Called Brandless

Here’s a Don Boudreau missive of the alphabet to the Wall Street Journal:

Reporting on a novel fellowship that, we’re told, volition sell “generic” consumer goods, your headline reads “Startup to Test the Power of Brands” (July 11).  Yet you lot innovate the fellowship amongst the following: “Called Brandless….”

Regardless of its aspirations, a fellowship called “Brandless” has a build – namely, “Brandless.”  And the goods sold past times that fellowship are non generic; they’re branded.  The company’s targeted consumers, who allegedly are set off past times brands, mightiness indeed fancy that past times buying products from a fellowship named “Brandless” that they are cleverly escaping crass capitalist plots to overcharge for pointless marketing gimmicks.  But these consumers’ agreement of markets is mistaken.  Consumers’ powerfulness to concur companies accountable for production lineament is made possible past times brands.  If Brandless peanut butter tastes yummy, consumers volition proceed to purchase peanut butter sold nether that brand; if instead Brandless peanut butter tastes similar sawdust or makes those who eat it ill, consumers volition avoid that brand.  Such accountability gives producers potent incentives to deliver consistently high-quality goods as well as services.  This happy final result is what explains the rising as well as persistence of brands – fifty-fifty i called “Brandless.”

Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha as well as Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA  22030

The higher upwardly originally appeared at Cafe Hayek. 

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