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A note on the effect of consumer protection requirements on firm strategy

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  • Huric Larsen, Jesper Fredborg

Abstract

The effect of consumer protection on firms’ strategy choices in a market with perfect competition is examined in a simple model. It is found that consumer protection may lead to reduced product quality and adverse effects on firm survival.

Suggested Citation

  • Huric Larsen, Jesper Fredborg, 2014. "A note on the effect of consumer protection requirements on firm strategy," MPRA Paper 58585, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:58585
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    File URL: https://mpra.ub.uni-muenchen.de/58585/1/MPRA_paper_58585.pdf
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    References listed on IDEAS

    as
    1. Joaquín Coleff, 2020. "Can consumer complaints reduce product reliability? Should we worry?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 74-96, January.
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      More about this item

      Keywords

      Strategy; consumer protection; firm incentives;
      All these keywords.

      JEL classification:

      • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
      • L6 - Industrial Organization - - Industry Studies: Manufacturing
      • L8 - Industrial Organization - - Industry Studies: Services

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