Economic Studies on the Phenomenon of Counterfeit & Inferior Commodities

In our country many markets are full of fake or inferior products and services. They not only damage consumer's benefit and destroy resources allocation badly, but also greatly reduce economical operation in quality and efficiency. Counterfeit inferior commodities phenomena arc eamed by market economy. The basic reason of their occurrence and existence is the asymmetric information between both sides of dealing. There are two main harms to economy-adverse selection and resource allocating inefficiency: counterfeit inferior commodities drive high-quality commodities out of market and destroy the producing allocation in the field of the whole society. Therefore it is necessary to propose countermeasures to prevent and eliminate this phenomenon by analyzing their harms and reasons.