Consequently, authorities that obtain and communicate specialized product information naturally arise in the free marketplace. Even in the highly regulated, non-free-market economies with which we are familiar, organizations such as Consumers Union and Underwriters Laboratories, as well as many publications offering product reviews, play an instrumental role. In a market where free consumer choice was permitted, however, the demand for such institutions would presumably be much greater, leading to a much more flourishing consumer-information industry. Like any other competitors in the marketplace, consumer-information authorities must strive to satisfy customers, providing the best possible product at the lowest price in order to increase market share.      Next page
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