| Author/Presenter |
Kenneth Corts (University of Toronto) |
| Title |
Prohibitions of false claims and unsubstantiated claims: inducing information provision through competition policy |
| Abstract |
This paper explores the differences between a ban on false claims and a ban on unsubstantiated claims in a model of asymetrically informed buyers and sellers. It shows that a ban on unsubstantiated claims can in many circumstances improve buyer information beyond what is achieved by a ban on false claims alone, even when the ban on false claims is enforced quite strictly. This is of interest because the Competition Act contains both kinds of prohibitions, and several recent legal challenges to the unsubstantiated claims prohibition have argued that it is redundant to the false claims prohibition. |
| Web Link |
http://economics.ca/2008/papers/0410.pdf |