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Law and Economics of the Withdrawal Right in EU Consumer Law

Author

Listed:
  • Karampatzos Antonios

    (National and Kapodistrian University of Athens, School of Law, Athens, Greece)

  • Ilić Nikola

    (Faculty of Law, University of Belgrade, Belgrade, Serbia)

Abstract

This paper analyses possibilities for amending the withdrawal right under the EU consumer law, aiming to reduce the information asymmetry between contracting parties in distance sales and thus increase the number of concluded contracts and the overall contractual surplus. The main findings are that the rules suggested in law and economics theory (the personalized mandatory rules and the mandated-choice model) may not be optimal tools for amending the withdrawal right because they mostly seem to neglect the allocation of risk between contracting parties. Thus, this paper suggests the new ‘risk allocation’ rules as a tool for amending the withdrawal right, focusing on its use in distance sales. If amended in line with those rules, the withdrawal right could deal with information asymmetry problems more efficiently, incentivise contracting parties to enter more distance sales contracts, and increase the overall contractual surplus, especially within the realms of e-commerce. The suggested proposal is conceived – at least for the time being – more as a thought experiment; relevant empirical analysis may follow up at a subsequent phase.

Suggested Citation

  • Karampatzos Antonios & Ilić Nikola, 2023. "Law and Economics of the Withdrawal Right in EU Consumer Law," Review of Law & Economics, De Gruyter, vol. 19(3), pages 435-452, November.
    • Handle: RePEc:bpj:rlecon:v:19:y:2023:i:3:p:435-452:n:5
    DOI: 10.1515/rle-2022-0076
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    References listed on IDEAS

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    1. Omri Ben-Shahar & Eric A. Posner, 2011. "The Right to Withdraw in Contract Law," The Journal of Legal Studies, University of Chicago Press, vol. 40(1), pages 115-148.
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    More about this item

    Keywords

    EU consumer law; withdrawal right; consumer protection; Directive 2011/83/EU; law and economics;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • K0 - Law and Economics - - General
    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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