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An economic analysis of consumer class actions in regulated industries

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Listed:
  • Ingo Vogelsang
  • Nishal Ramphal
  • Stephen Carroll
  • Nicholas Pace

Abstract

Regulation and consumer class actions can complement, duplicate, or oppose each other, depending, among others, on the leanings of regulatory objective functions towards the industry or consumers. In particular, pro-consumer regulators would like to see consumers benefit from class actions while pro-industry regulators would like to prevent regulated firms from being harmed by them. However, because pro-consumer regulators are already doing their best for consumers and pro-industry regulators their best for firms, they are both usually constrained in their policies. The result is that class actions tend to be less efficient under pro-consumer regulators and more efficient under pro-industry regulators. Copyright Springer Science+Business Media, LLC 2007

Suggested Citation

  • Ingo Vogelsang & Nishal Ramphal & Stephen Carroll & Nicholas Pace, 2007. "An economic analysis of consumer class actions in regulated industries," Journal of Regulatory Economics, Springer, vol. 32(1), pages 87-104, August.
    • Handle: RePEc:kap:regeco:v:32:y:2007:i:1:p:87-104
    DOI: 10.1007/s11149-007-9027-y
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    References listed on IDEAS

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    Cited by:

    1. David Deller & Francesca Vantaggiato, 2014. "Revisiting the Regulatory State: A Multidisciplinary Review Establishing a New Research Agenda," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2014-09, Centre for Competition Policy, University of East Anglia, Norwich, UK..

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    More about this item

    Keywords

    Class action; Insurance regulation; Price regulation; Legal costs; Compensation; K13; K23; K41; L51;
    All these keywords.

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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