Monday, January 9, 2012
Posted by D. Daniel Sokol
Mark Amstrong (Oxford - Econ) summarizes Economic models of consumer protection policies.
ABSTRACT: This paper summarizes some of my recent work on consumer protection. I present three theoretical models which illustrate the merits and drawbacks of a number of common consumer protection policies, namely: policies which prevent firms from setting unduly high prices; policies which prevent firms requiring on-the-spot decision making by prospective customers, and policies which prevent suppliers from paying commission payments to sales intermediaries.