Increased competition is thought to lead to more choice and lower prices for consumers. However, if consumers are not ready for, or not capable of, exercising their choice, competition might hurt them. One issue is consumer confusion, possibly resulting from market liberalization. This issue is especially important in healthcare, energy, and financial markets, where offerings tend to be relatively complex. Another issue concerns hidden costs for consumers. Do markets supply adequate protection to consumers, or should policy-makers intervene to protect them? What is the optimal type of policy intervention? Which public authorities (for instance, competition authority or consumer authority) and which private authorities (for instance, consumers' unions, firm's mediators) should take care of which tasks and responsibilities? Mark Armstrong (UCL), Peter Kooreman (Tilburg University and Netspar), Marije Hulshof and Dirk Janssen (Netherlands Consumer Authority) will present their views on these issues during a half-day workshop organized in The Hague on 2 June 2008 by the Netherlands Bureau for Economic Policy Analysis (CPB), the Dutch Ministry for economic affairs, CentER and TILEC. Attendance is free but registration is required.
May 28, 2008
Does competition really serve consumers?
Increased competition is thought to lead to more choice and lower prices for consumers. However, if consumers are not ready for, or not capable of, exercising their choice, competition might hurt them. One issue is consumer confusion, possibly resulting from market liberalization. This issue is especially important in healthcare, energy, and financial markets, where offerings tend to be relatively complex. Another issue concerns hidden costs for consumers. Do markets supply adequate protection to consumers, or should policy-makers intervene to protect them? What is the optimal type of policy intervention? Which public authorities (for instance, competition authority or consumer authority) and which private authorities (for instance, consumers' unions, firm's mediators) should take care of which tasks and responsibilities? Mark Armstrong (UCL), Peter Kooreman (Tilburg University and Netspar), Marije Hulshof and Dirk Janssen (Netherlands Consumer Authority) will present their views on these issues during a half-day workshop organized in The Hague on 2 June 2008 by the Netherlands Bureau for Economic Policy Analysis (CPB), the Dutch Ministry for economic affairs, CentER and TILEC. Attendance is free but registration is required.
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