Uhl Model

1
Uhl Model
Human Capital
Consumer Welfare
Competition / Voluntary Seller's Activities
Legislation and Regulation
Adopted from Uhl, J. (1971). Consumer
Education and protection A synergistic
relationship.
2
Why do we have consumer regulation?

• the market isnt working well
• some consumers cannot protect themselves even in
  a market that works well
• because someone (as often industry as consumers)
  well benefit

3
The Costs and Benefits of Regulation

• tangible benefits --and consumer regulations have
  a benefit to consumers
• every regulation has a cost

4
How much regulation do we need?

• Conservatives say we need less
• even Liberals arent calling for much new
  consumer protection regulations and legislation

5
Price Dispersion - Quality Constant Product
Martha Gold Pillsbury White Store White
Metal Lily Brand Bells .338 .318 .398
.258 Kroger .358 .338 .358 .249 .298 Winn
Dixie .358 .218 .358 .398 .298 Publix
.358 .198 .198 .298 .290 Ingles .338
.318 .338 .398 .218 BiLo .378
.358 .358 .398 .298 (price/pound)