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Fairness Crowded Out by Law: An Experimental Study on Withdrawal Rights

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Author Info
Georg Borges
Bernd Irlenbusch

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Abstract

Withdrawal rights protect buyers in distance selling, for example when ordering via the Internet. After introducing such a law in Germany the proportion of returned goods drastically increased although most sellers had already offered a return option before. We experimentally investigate scenarios in which sellers can voluntarily offer a withdrawal right. In a second treatment it is provided by law. We find indications that a voluntary provision is perceived as friendly, so that buyers reciprocate by not exploiting sellers too heavily. A third treatment reveals that small return costs for buyers have only a marginal influence on withdrawal behaviour.

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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 163 (2007)
Issue (Month): 1 (March)
Pages: 84-101
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200703)163:1_84:fcobla_2.0.tx_2-f

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Find related papers by JEL classification:
K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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This page was last updated on 2008-8-14.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.