How does the "halo effect" affect you?

Have you ever been helped or hurt by the halo effect? Have you ever discriminated against a better person because you know the other person? What happened?

Have you been the beneficiary of it? Do you find that once you have a good reputation, it is easier for you to get what you want, even if competing with someone who is just as good, but doesn’t have a reputation?

Do you value reputation so much that you would rather work with someone you know, even if you don’t really like their work, than to take a risk on someone you don’t know, but who looks really good?

Do you think the halo effect is a good thing? Is it reasonable? Or is it a prejudice that hurts some good people simply because they are not known?