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How does anyone really know that they’ve picked the right baby formula, soda or car? They don’t, and manufacturers know that. That’s why our economy is filled with highly promoted branding campaigns that, however superficial or annoying, can be enormously helpful guides.
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it’s less likely to squander its name by skirting the rules or engaging in shoddy manufacturing than a company with less to lose.
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Economists have a name for these cues that companies employ to convey their hidden strength: signaling.
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