The Economics of Product Safety and Imperfect Information
Volume: Volume 5, No. 2
Issue: Autumn 1974
Pages: pp. 683-688
Authors: Victor P. Goldberg
Title: The Economics of Product Safety and Imperfect Information
Abstract: In an earlier article in the Bell Journal, Walter Oi analyzed the economics of product safety. His primary emphasis was on a full information model. However, since product safety is only a problem if consumer information is inadequate, policy implications of a full information analysis are suspect. This paper stresses the importance of treating product bans and liability rules as part of the consumer's information processing system.
JEL Classification
Consumer Protection (9213)
Welfare Theory General (0240)