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The average consumer, the unfair commercial practices directive, and the cognitive revolution

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Author Info
Rossella Incardona ()
Cristina Poncibò ()
Abstract

This article examines the merit of the test of the average consumer as a basis for judicial and regulatory action. In the first part, we describe the origin of the test, its application in the Unfair Commercial Practices Directive and its possible developments. In the second part, we discuss the theoretical grounds of the average consumer test (i.e., information and rationality), drawing upon the studies of cognitive psychology and behavioural economics concerning consumers’ behaviour. The result of our analysis is that we call into serious question the practical workability of the test of the average consumer, which requires consumers an overly demanding standard of rationality and information without dedicating much attention to the real functioning of consumer behaviour. The average consumer may be described as an interesting, anti-paternalistic and, to some extent, useful notion. It is, however, an overly simplistic concept with little correspondence with the real world of individual consumer behaviour and should be reinterpreted more flexibly, or even abandoned to mirror consumer behaviour more effectively. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s10603-006-9027-9
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Publisher Info
Article provided by Springer in its journal Journal of Consumer Policy.

Volume (Year): 30 (2007)
Issue (Month): 1 (March)
Pages: 21-38
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Handle: RePEc:kap:jcopol:v:30:y:2007:i:1:p:21-38

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Related research
Keywords: Average consumer; Unfair commercial practice directive; Cognitive studies;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Cass R. Sunstein & Richard H. Thaler, 2003. "Libertarian paternalism is not an oxymoron," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, issue Jun. [Downloadable!]
  2. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March. [Downloadable!] (restricted)
  3. Malhotra, Naresh K, 1982. " Information Load and Consumer Decision Making," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 8(4), pages 419-30, March.
  4. Jacoby, Jacob, 1984. " Perspectives on Information Overload," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 10(4), pages 432-35, March.
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