In a competitive market where companies sell similar things to people who are swayed by what others think, firms can make money by setting prices that benefit them both. Even when products are the same, it's possible for companies to charge different amounts and earn different profits. This means that when businesses battle it out by offering the same prices, differences in people's preferences can lead to success. Additionally, when products are not identical, social differences can be more important than actual differences in the products themselves when it comes to having unique prices.