Title: LEGAL IMPLICATIONS OF IMPERFECT INFORMATION IN CONSUMER MARKETS-COMMENT
Abstract: Alan Schwartz [1995] has written a very thoughtful and informative paper on the law and economics of consumer protection. This is a complicated subject and he spans an enormous literature from asymmetric information to insurance to the merits of (past and possible) consumer protection remedies. The generic problem is that consumers are small and comparatively ignorant in dealing with firms. Consumers are thus held to be at a power disadvantage (because of their small size), which condition is compounded by information asymmetry. Public policy intervention on behalf of consumers is thus often recommended as a way of relieving information and power disparities. The argument has obvious appeal and, indeed, may be appropriate for some goods and services and/or for some consumer groups. There are a variety of mitigating factors, however:
Publication Year: 1995
Publication Date: 1995-01-01
Language: en
Type: article
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