Information Remedies for Consumer

Information Remedies for Consumer - Information Remedies...

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Information Remedies for Consumer  Protection 17:00 In response to CP regulation dissent: Regulators have begun to innovate with market interventions more compatible  with economic incentives Information disclosure allows consumer self-protection, compatible with  individual preferences, and seller’s incentives Competition increases incentive to generate and disseminate additional  product information Diagnosis of an information problem requires: Analysis of information production and distribution Identification of market failures/their implications for resource allocation in the  information and product markets Analysis of alternative remedies in light of market failures Information Markets and Market Failures Consumers purchase information and certifications from a variety of  intermediaries like newspapers and termite inspectors, and are given  information by interested sellers Not efficient to mandate dissemination of currently undisclosed informmtaiton Market failures often prevent an efficient quality and quantity of product  information from being provided Purchases by informed consumers generate a  market perfecting external  benefit  to uninformed consumers Additional information induces sellers to compete for patronage of informed 
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Information Remedies for Consumer - Information Remedies...

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