BEYOND PERCEPTION: BRAND NAMES ACT LIKE PLACEBOS Moty AMAR Dan ARIELY Maya BAR-HILLEL Ziv CARMON Chezy OFIR Abstract The commercial reputation that is embodied in brand names is known to alter expectations, preferences, and even the subjective efficacy of products—the very same cola may be expected to be better, be preferred, and even taste better if it is labeled Coke, for example. This paper illustrates that branding can also influence objective product efficacy. For example, study participants facing a glaring light were asked to read printed words as accurately and as quickly as they could, receiving compensation proportional to their performance. Those wearing Ray-Ban labeled sunglasses read more quickly and with fewer errors than those wearing the same sunglasses labeled Mango (a less reputable brand). Similarly, ear-muffs blocked noise more effectively, titanium eyeglass frames weighed less, and chamomile tea improved mental focus more, when the target products carried more reputable brand names. Key words: Branding, Placebo, Product efficacy, Reputation Beyond Perception Moty AMAR Ono Academic College, Israel mamar@ono.ac.il Dan ARIELY Maya BAR-HILLEL Duke University, USA The Hebrew University, Israel dandan@duke.edu maya@huji.ac.il Ziv CARMON Chezy OFIR INSEAD, Singapore The Hebrew University, Israel ziv.carmon@insead.edu msofir@mscc.huji.ac.il