A generic drug is pharmacologically identical to its counterpart branded medicationAegeanBlue/Getty ImagesDrugs seem to cause worse side effects if people think they are cheap. This finding could encourage doctors to explain to people that treatments can be effective and safe regardless of whether they are trademarked brands or less expensive copies.Most people have heard of the placebo effect, says Kate Faasse at the University of New South Wales in Sydney, Australia. Its this idea that you can take a sugar pill, think it will work, and its going to cause health improvement.