2 (Economics) Why Knockoffs Can Help a Strong Brand - Article Example

Why Knockoffs Can Help a Strong Brand The knockoff economy emphasizes how copies of the real brand serve as a positive reinforcement to the original product and even make them increase their profits even though that might not appear to be the case. Research conducted by Jonathan Barnett who is a legal scholar confirms this fact by explaining that copies increase the desirability for the original product for that buyer or the others who see the counterfeit. This therefore increases the sales of the original brand despite there being counterfeits.

Further confirmation of the above according to the article has been provided by Renee Gosline’s study in Massachusetts Institute of Technology and also by Yi Qian of the National Bureau of Economic Research. According to the research findings of the two above mentioned researchers, counterfeits serve as a passage to the original products and have positive effects on the sales of the original brand products.The counterfeits brands therefore according to the article can be said to have more advertising effect than substitution effects and therefore pose no much danger to the original brands.

They actually save them from more advertisement charges since sooner or later the consumers realize the difference between the original and the counterfeit and move to the original. This knockoff effect does not however affect only the formal brands which have trademarks and are protected by law. The article further explains that even individual creators with their own unique line of designs and creativity can have copies of their work being reproduced. The overall effect and outcome is however the same as that of the formal brands since the consumers will realize the difference of the original and the counterfeit and move to the original.

Work CitedRaustiala, Karl and Springman, Chris. “Why Knockoffs Can Help Build a Strong Brand.” Freakonomics 9/5/2012. Retrieved from: http://www.freakonomics.com/2012/09/05/why-knockoffs-can-help-a-strong-brand/