6 research outputs found
Algorithmic pricing
Get PDFThe rise of algorithmic pricing has transformed perfect price discrimination from a theoretical concept into a real possibility. Through self-learning pricingalgorithms, a strategy can be developed that approximates consumers’ reservation prices with ever-improving accuracy. This paper analyzes algorithmic pricing from a law and economics perspective to identify the efficiency and equity effects that the practice could cause and determine to which extent it is regulated under the current legal framework. This paper finds that under competitive market conditions, algorithmic pricing could be welcomed from an efficiency perspective, but from an equity and ethical perspective serious concerns need to be raised. If these concerns are to be taken seriously, the legal framework provides only a partially functional approach to address algorithmic pricing. Additional appropriate remedies are, therefore, needed to protect consumers adequately and effectively against exploitation that reduces their welfare
The Law and Economics of Consumer Law
Get PDFConsumer protection laws have a deep regulatory impact on the functioningof markets. The law and economics approach is a particularly apt methodologyto study the inefficiencies in consumer markets and to investigate the potential effects of regulatory intervention on consumer welfare. This contribution discusses the traditional consumer law and economics approach with its strong grounding in rational choice theory, complemented with insights from information economics. On the basis of this approach, it can be determined to what extent consumer protection rules are in harmony with the normative criterion of economic efficiency and to what extent market intervention is warranted. Through the economic analysis of consumer law, the aim to improve the level of consumer protection can be pursued while accounting for the welfare effects of regulation. In this way, valuable contributions to consumer policymaking can be made, which from both a legal and an economic perspective can be justified
The Law and Economics of Consumer Law
Get PDFConsumer protection laws have a deep regulatory impact on the functioningof markets. The law and economics approach is a particularly apt methodologyto study the inefficiencies in consumer markets and to investigate the potential effects of regulatory intervention on consumer welfare. This contribution discusses the traditional consumer law and economics approach with its strong grounding in rational choice theory, complemented with insights from information economics. On the basis of this approach, it can be determined to what extent consumer protection rules are in harmony with the normative criterion of economic efficiency and to what extent market intervention is warranted. Through the economic analysis of consumer law, the aim to improve the level of consumer protection can be pursued while accounting for the welfare effects of regulation. In this way, valuable contributions to consumer policymaking can be made, which from both a legal and an economic perspective can be justified
Taking marketing seriously:A law and economics analysis of personalized marketing in the digital age
Get PDFImagine every ad, every price, and even every contract completely tailored to you personally — welcome to the age of AI-driven hyper-personalization.Today, vast amounts of consumer data can be collected and processed, creating consumer profiles that are individualized with ever-increasing precision. This has paved the way for one-to-one interactions that can be adjusted in real-time and lead to unparalleled behavior modification. Personalized marketing promises to respond more accurately to consumer needs and preferences, elevating the effectiveness of marketing communications to new heights. However, this seemingly customized digital world is accompanied by serious concerns about the alarming potential of personalized marketing to exploit consumers’ cognitive biases, heuristics, and vulnerabilities. The power of hyper-personalization to subtly bend consumer behavior to the will of companies and give marketers unprecedented control raises the question of the extent to which this could lead to a significant deterioration of consumers’ position in the market.This dissertation analyzes personalized marketing from a law and economics perspective to expose and contrast its promises and perils. In doing so, it examines the extent to which personalized marketing is regulated by the EU legal framework. The research shows that current European consumer policy can only partially protect consumers. A four-part policy approach is therefore proposed to adequately address personalized marketing and safeguard consumer autonomy, equity, and welfare.Regulating personalized marketing is a complex task characterized by a clear trade-off between efficiency and fairness. How much freedom do you give up in exchange for a hyper-personalized experience? How confident are you that the price you pay will not exceed what others pay for the exact same service? And what does it mean for your autonomy when an algorithm predicts your behavior better than you do yourself? This dissertation seeks to provide a starting point for further regulation and ultimately contribute to better consumer protection in the digital age.<br/
The Law and Economics of Consumer Law
Get PDFConsumer protection laws have a deep regulatory impact on the functioningof markets. The law and economics approach is a particularly apt methodologyto study the inefficiencies in consumer markets and to investigate the potential effects of regulatory intervention on consumer welfare. This contribution discusses the traditional consumer law and economics approach with its strong grounding in rational choice theory, complemented with insights from information economics. On the basis of this approach, it can be determined to what extent consumer protection rules are in harmony with the normative criterion of economic efficiency and to what extent market intervention is warranted. Through the economic analysis of consumer law, the aim to improve the level of consumer protection can be pursued while accounting for the welfare effects of regulation. In this way, valuable contributions to consumer policymaking can be made, which from both a legal and an economic perspective can be justified
Taking marketing seriously:A law and economics analysis of personalized marketing in the digital age
Get PDFImagine every ad, every price, and even every contract completely tailored to you personally — welcome to the age of AI-driven hyper-personalization.Today, vast amounts of consumer data can be collected and processed, creating consumer profiles that are individualized with ever-increasing precision. This has paved the way for one-to-one interactions that can be adjusted in real-time and lead to unparalleled behavior modification. Personalized marketing promises to respond more accurately to consumer needs and preferences, elevating the effectiveness of marketing communications to new heights. However, this seemingly customized digital world is accompanied by serious concerns about the alarming potential of personalized marketing to exploit consumers’ cognitive biases, heuristics, and vulnerabilities. The power of hyper-personalization to subtly bend consumer behavior to the will of companies and give marketers unprecedented control raises the question of the extent to which this could lead to a significant deterioration of consumers’ position in the market.This dissertation analyzes personalized marketing from a law and economics perspective to expose and contrast its promises and perils. In doing so, it examines the extent to which personalized marketing is regulated by the EU legal framework. The research shows that current European consumer policy can only partially protect consumers. A four-part policy approach is therefore proposed to adequately address personalized marketing and safeguard consumer autonomy, equity, and welfare.Regulating personalized marketing is a complex task characterized by a clear trade-off between efficiency and fairness. How much freedom do you give up in exchange for a hyper-personalized experience? How confident are you that the price you pay will not exceed what others pay for the exact same service? And what does it mean for your autonomy when an algorithm predicts your behavior better than you do yourself? This dissertation seeks to provide a starting point for further regulation and ultimately contribute to better consumer protection in the digital age.<br/
