Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/63268
Citations | ||
Scopus | Web of Science® | Altmetric |
---|---|---|
?
|
?
|
Type: | Journal article |
Title: | Return policies, market outcomes, and consumer welfare |
Author: | Chesnokova, T. |
Citation: | Canadian Journal of Economics, 2007; 40(1):296-316 |
Publisher: | Univ Toronto Press Inc |
Issue Date: | 2007 |
ISSN: | 0008-4085 1540-5982 |
Statement of Responsibility: | Tatyana Chesnokova |
Abstract: | <jats:p><jats:bold>Abstract. </jats:bold> The effect of return policies on market outcomes is studied in a model where consumers differ in their valuations of time. Product reliability is identified with defect rates. Producers first choose reliability levels and then compete in prices. For given defect rates, allowing returns makes products closer substitutes, enhancing competition and reducing prices. Being closer substitutes makes higher reliability less worthwhile, which reduces reliability. While the decrease in reliability reduces consumer welfare, the decrease in prices raises it. The latter dominates, so that aggregate consumer welfare increases with return policy.</jats:p> |
Description: | Revue canadienne d'économique |
Rights: | © Canadian Economics Association |
DOI: | 10.1111/j.1365-2966.2007.00409 |
Published version: | http://dx.doi.org/10.1111/j.1365-2966.2007.00409.x |
Appears in Collections: | Aurora harvest Economics publications |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.