Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy

Pappalardo, Janis K.

doi:10.1007/s10603-021-09482-4

Cited by 2 publications

(2 citation statements)

References 53 publications

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“…Pappalardo (2022), a long-time FTC thought leader in consumer protection, presents several possible models for estimating welfare effects, one of which is Train's (2015) proposed methodology for calculating welfare loss in situations where anticipated and experienced attributes differ. Although not initially developed for the situation of fictitious pricing, this methodology is based on shifting demand curves and thus is applicable to our focus of interest.…”

Section: Consumer Welfare Implicationsmentioning

confidence: 99%

“…There is no common standard for estimating damages, and the available measurement approaches vary in their complexity, underlying assumptions, and believability to judges (Hamilton and Werner 2017; see also Bedi and Reibstein 2021). Rather than wading into the complications associated with analysis of damages at the individual level, we instead follow the encouragement of both Friedman (2016) and Pappalardo (2022) and consider consumer welfare impact at a more aggregate level.…”

Section: Consumer Welfare Implicationsmentioning

confidence: 99%

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Competition and the Regulation of Fictitious Pricing

Staelin¹,

Urbany²,

Ngwe³

2023

Journal of Marketing

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Fifty years ago, the Federal Trade Commission (FTC) stopped enforcing its fictitious reference pricing guidelines, emphasizing the search qualities of price and the belief that competition would drive out deceptive behavior. Yet this practice of posting false, inflated comparison prices alongside sale prices has proliferated. Building on prior analytic work and the documented effects of reference pricing on search behavior and consumer choice, we develop a descriptive model explaining why fictitious reference pricing has spread instead of being extinguished by competition. After summarizing the model with a series of generalizations, we consider potential regulatory solutions to the problem. We propose that disclosure of the true normal price charged may be the only solution that could plausibly influence both consumer and firm behavior. Then, based upon the existing literatures, interviews with practitioners and regulators, an analysis of other nations’ approaches, and the results of a laboratory study of 900 consumers to examine how they integrate “true normal price” information into deal evaluations, we develop a set of propositions about the likely effects of requiring firms to disclose recent selling prices for goods, identifying both potentially benefits and challenges associated with such a requirement.

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Section: Consumer Welfare Implicationsmentioning

confidence: 99%

Section: Consumer Welfare Implicationsmentioning

confidence: 99%

Competition and the Regulation of Fictitious Pricing

Staelin¹,

Urbany²,

Ngwe³

2023

Journal of Marketing

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Consumer Policy

Prabha,

Saluja

2024

Advances in Marketing, Customer Relationship Management, and E-Services

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Consumer policy is designed to protect welfare and rights of consumers. The recent advancements in artificial intelligence (AI) and its integration with the privacy aspects of consumer information need potential attention due to illegal activities in terms of fraud. The rapid progress of AI represents significant risks to safeguarding consumer privacy and ensuring data security. The integration of AI inside several industries, such as e-commerce platforms, and financial technology, has become prevalent. This leads to emphasizing the significance of developing comprehensive legal and regulatory frameworks to address effectively the challenges related to consent, data minimization, accuracy, discrimination, and bias. The chapter explores the concept of AI and its public and private use in consumer policies. The key components are highlighted in making consumer policy along with the relationship between AI and data privacy aspects. Finally, it presents the challenges faced by consumers in accessing vital information, that lead to imbalances between companies and customers.

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Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy

Cited by 2 publications

References 53 publications

Competition and the Regulation of Fictitious Pricing

Competition and the Regulation of Fictitious Pricing

Consumer Policy

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