A Note on the Effect of Consumer Protection Requirements on Firm Strategy

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Research , Preprint , Report 01 Jan 2014 Denmark, Germany English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Huric Larsen, Jesper Fredborg;

doi: 10.2139/ssrn.2507626

A Note on the Effect of Consumer Protection Requirements on Firm Strategy

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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.

Countries

Denmark, Germany

Related Organizations

Karlstad University
Sweden
University of Southern Denmark
Denmark
Ludwig-Maximilians-Universität München
Germany

Keywords

B21 - Microeconomics, L6 - Industry Studies: Manufacturing, Strategy, consumer protection, firm incentives, L8 - Industry Studies: Services, jel: jel:L6, jel: jel:B21, jel: jel:L8

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