JOURNAL ARTICLE
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Gewährleistungsregeln als Instrument der Informationsübertragung
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 113 (1993), Iss. 1 : pp. 77–113
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Wehrt, Klaus
Abstract
The article analyses the German legal norms of warranty (money-back-warranties, price reductions, damages, and replacement warranties) in a model of a competitive market according to their ability to induce the disclosure of product information. Two types of consumers demand goods: One type is only interested in high quality products, the other would also buy low quality products. The analysis arrives at two basic conclusions: a) Even in the case of identical suppliers with an unchangeable given quota of low quality products there is a need for warranties, b) The legal warranties are in principle suited to stimulate the necessary disclosure.