Why do many brands advertise with well-known trademarks?
The extra income brought by famous brands to producers, or economic rent, is similar to innovation in principle and is producer surplus. As far as consumers are concerned, the consumption of well-known brands can increase their effectiveness. As rational economic people, consumers want to reduce their purchase expenses. Therefore, the consumption of cheap "well-known" goods can also increase consumer surplus, which can increase producer surplus, consumer surplus and the overall welfare of the whole society. Therefore, all localities (industries) will not only control local (industry) well-known trademarks, but will encourage selection and try to tap well-known trademarks in the industry or well-known brands in the region.