Armstrong, Mark (2011): Economic models of consumer protection policies.
Download (140kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Economic models of consumer protection policies|
|Keywords:||Consumer protection, consumer search, marketing, commission sales|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D18 - Consumer Protection
M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
|Depositing User:||Mark Armstrong|
|Date Deposited:||16. Nov 2011 17:46|
|Last Modified:||15. Feb 2013 22:45|
Mark Armstrong (2008), "Interactions between competition and consumer policy", Competition Policy International 4(1): 97-147.
Mark Armstrong, John Vickers and Jidong Zhou (2009), "Consumer protection and the incentive to become informed", Journal of European Economic Association 7(2-3): 399-410.
Mark Armstrong and Jidong Zhou (2011a), "Paying for prominence", Economic Journal 121: F363-395.
Mark Armstrong and Jidong Zhou (2011b), "Exploding offers and buy-now discounts", mimeo.
Kenneth Burdett and Kenneth Judd (1983), "Equilibrium price dispersion", Econometrica 51: 955-969.
Robert Cialdini (2001), Influence: Science and Practice, Allyn and Bacon (fourth edition).
Chaim Fershtman and Arthur Fishman (1994), "The `perverse' effects of wage and price controls in search markets", European Economic Review 38: 1099-1112.
Roman Inderst and Marco Ottaviani (2011), "Competition through commissions and kickbacks", American Economic Review (forthcoming).
Christopher Knittel and Victor Stango (2003), "Price ceilings as focal points for tacit collusion: evidence from credit cards", American Economic Review 93: 1703--1729.
Massimo Motta (2004), Competition Policy: Theory and Practice, Cambridge University Press.
Timothy Muris (2002), "The interface of competition and consumer protection", paper presented at Fordham Corporate Law Institute's 29th Annual Conference on International Antitrust Law and Policy, New York.
Richard Posner (1969), "The Federal Trade Commission", University of Chicago Law Review 37(1): 47-89.
Ran Spiegler (2011), Bounded Rationality and Industrial Organization, Oxford University Press.
Hal Varian (1980), "A model of sales", American Economic Review 70(4): 651-569.
John Vickers (2004), "Economics for consumer policy", Proceedings of the British Academy 125: 287-310.