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Raising rivals’ costs and right to repair laws: Separating the sheep from the goats?

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  • Michael Dortz

    (Rochester Institute of Technology)

  • Jeffrey Wagner

    (Rochester Institute of Technology)

Abstract

We conceptualize right to repair laws as requiring original equipment manufacturers (OEMs) to walk back significant first-mover advantages, much of which comprise intellectual property rights. Doing so reduces rivals’ costs, which in turn increases competition in repair markets and environmental quality. Indeed, our microeconomic theory of right to repair laws shows that the credible threat of antitrust action or passage of a right to repair law may raise social welfare, as the OEM optimally walks back some of its information advantage in order to reduce the likelihood of these interventions. Back-of-the-envelope simulation of the model yields welfare comparisons.

Suggested Citation

  • Michael Dortz & Jeffrey Wagner, 2025. "Raising rivals’ costs and right to repair laws: Separating the sheep from the goats?," Journal of Regulatory Economics, Springer, vol. 68(1), pages 1-16, August.
    • Handle: RePEc:kap:regeco:v:68:y:2025:i:1:d:10.1007_s11149-025-09490-z
    DOI: 10.1007/s11149-025-09490-z
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    Keywords

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    JEL classification:

    • L49 - Industrial Organization - - Antitrust Issues and Policies - - - Other
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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