Dado5,
Please, consider the following completely hypothetical situation in the market for toasters.
Suppose we have two toasters available in the market. Suppose that the two toasters are identical, except cosmetically. That means that they cook toast in exactly the same way. So that if I put 1000 slices of bread through toaster 1, with toaster 1 on a given setting, and then put 1000 slices of toast through toaster 2, with toaster 2 on exactly the same setting, that in every conceivable aspect of the toast produced toaster 1 generates the same distribution of outcomes as toaster 2.
Now suppose that toasters 1 and 2 are equally easily obtainable, but that toaster 1 sells for twice the price of toaster 2. And suppose that the information concerning the relative toasting abilities of the two toasters is commonly known in the market. What would you imagine would be true about the relative sales of these two toasters? I suspect that we would agree that the answer would depend on the subjective willingness of individuals to pay for the more expensive cosmetics of toaster 1.
Alternatively, suppose that the information concerning the relative toasting abilities of these toasters is not widely distributed. Do you imagine that the relative sales of the two toasters would be different from that generated when consumers are fully informed? While you may choose not to agree, I would happily wager a large amount of money that there would be a difference, and that sales in the uninformed case would be skewed in favor of the expensive toaster. In a world in which they are uninformed, the consumers look to infer something from prices, and some proportion of consumers is likely to conclude that the higher priced toaster is actually a more capable toaster. Given the description of the toasters, these people would be wrong.
Which situation is more desirable? The answer depends on who you are. If you manufacture toaster 1, or hold shares in that firm, then you like the uninformed situation. If you manufacture both toasters then you probably also prefer the uninformed situation. If you're a consumer, then you clearly prefer to be equipped with all the relevant information. And if you care about the efficiency of the market (the market's ability to ensure that exchange takes place if and only if there are mutual gains to that exchange), in this case you would agree with the consumer. In suppressing this information, one distorts the incentives to produce toasters, encouraging a greater proportion of type 1 toasters to be present in the market. Thus the average price of toasters rises, and fewer toasters will be sold. One also generates real uncertainty amongst consumers about the relative quality of toasters in general, which translates to a reduction in the quantity of toasters sold. The bottom line is that this market will do a poorer job of delivering toasters to people who care to toast.
Now, the information about the toasters does not preclude choice in the toaster market. It simply allows people accurately to express their preferences when purchasing toasters. People who buy toaster 1 express a strong preference for the cosmetics of toaster 1. People who buy toaster 2 reveal that the cosmetic differences between the toasters is not enough to encourage them to buy toaster 1. If the market outcome is that so few people buy toaster 1 that in ceases to be cost effective to provide it, then so be it. The market has spoken. This is a conseqence of toaster 1 not providing sufficient value to the consumer to merit its price.
Why on earth would I object to an organisation dedicated to revealing this sort of information about toasters? Why on earth would I accuse such an organisation of any kind of anti-market mentality? The real information that this organisation strives to present actively promotes the efficacy of the market to direct resources to their most valued uses. And on this dimension, for the life of me, I cannot see the distinction between your Objectivists and an organisation dedicated to providing information about my hypothetical toasters.
You may doubt that the information produced by these Objectivists is accurate. In that case, discount the information. You may doubt that the information is relevant. In that case, feel free to ignore it. Clearly, many audio enthusiasts choose exactly this course. But to label the efforts as detrimental to the efficacy of the market simply makes no sense.
Chad