Year: 1993
Author: Wehrt, Klaus
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 113 (1993), Iss. 1 : pp. 77–113
Abstract
The article analyses the German legal norms of warranty (money-back-warranties, price reductions, damages, and replacement warranties) in a model of a competitive market according to their ability to induce the disclosure of product information. Two types of consumers demand goods: One type is only interested in high quality products, the other would also buy low quality products. The analysis arrives at two basic conclusions: a) Even in the case of identical suppliers with an unchangeable given quota of low quality products there is a need for warranties, b) The legal warranties are in principle suited to stimulate the necessary disclosure.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.113.1.77
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 113 (1993), Iss. 1 : pp. 77–113
Published online: 1993-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 37