Comment by mrguyorama

>Once upon a time, the price of a product was often a good indicator of its quality. If you saw two products side by side on the shelf and one was more expensive, then you might assume that it was less likely to break or wear out soon.

I don't think this has ever actually been true. There was plenty of expensive snake oil in 1800s America. There were plenty of expensive shit things. There always has been. Christ, that ancient tablet of that guy complaining about copper quality is one of the oldest written documents we have, and I can assure you that copper was not cheap.

Price has never been a signal of quality because it wouldn't make any sense. The price is set by the seller. That's the only signal it can convey; what the seller expects you to pay. There's never been a perfectly efficient market where a seller is forced to set the price of something to match it's value or quality. There has always been information asymmetry. There has always been a difficulty in finding out whether that thing for sale is actually worth it.