The Economics of Brands and Branding

Consumer goods industries tend to be dominated by a small number of nationally-branded goods. In many cases, brands are one of the only sources of differentiation between otherwise physically undifferentiated products. In this chapter we survey the literature on the role of consumer branding and brand preferences in driving consumer demand. We also discuss the incentives for firms to invest in and build brands on the supply side. Finally, we discuss the measurement of the economic value of brands as intangible assets