1 2. The market provides an incentive for consumers to acquire information. When a business is dependent...

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1 2. The market provides an incentive for consumers to acquire information. When a business is dependent on repeat customers, it has a strong incentive to promote customer satisfaction. However, when goods are either

(a) difficult to evaluate on inspection and seldom purchased repeatedly from the same producer or

(b) have potentially serious and lasting harmful effects, consumer trial and error may be an unsatisfactory means of determining quality. The interests of the consumer and producer are in conHict.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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