New publication: When counterfeits help luxury brands

A new article by IMCA's Associate Professor Léna Pellandini-Simányi and co-author Adam S. Hayes (University of Lucerne), published in the Journal of Business Research, challenges the conventional assumption that counterfeits are categorically harmful to luxury brands. Drawing on information asymmetry theory and two experimental studies, the paper proposes an inverted U-shaped relationship between counterfeit-related uncertainty in the secondhand market and consumer demand in the primary market. The findings suggest that moderate authenticity uncertainty can redirect consumers toward primary market purchases, where authenticity is guaranteed, while extreme uncertainty causes consumers to exit the market altogether. The study offers new theoretical and managerial insights for luxury brands navigating the rise of digital resale platforms.

Read the full article: Journal of Business Research, 2025