Behavioural problem, behavioural solution: the case of extended warranties
Competition Law

Behavioural problem, behavioural solution: the case of extended warranties

Consumers do not always behave fully rationally. In some cases their purchasing behaviour can be a contributing factor to concerns about competition and poor market outcomes. Can interventions that help to inform consumers and influence their behaviour be more appropriate than more structural interventions in these cases? The extended warranties market is one example where access to information has been improved in order to resolve a competition authority’s concerns.

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