Publication
Title
Default options and social welfare : opt in versus opt out
Author
Abstract
We offer a social-welfare comparison of the two most prominent default options opt in and opt out using a two-period model of localized competition. We demonstrate thatwhen consumers stick to the default option, the prevailing default policy shapes firms ability to collect and use customer information, and affects their pricing strategy and entry decision differently.The free-entry analysis reveals that fewer firms enter under opt out as competition becomes harsher, and that opt out is the socially preferred default option. (JEL: D11)
Language
English
Source (journal)
Journal of institutional and theoretical economics. - Tübingen
Publication
Tübingen : 2013
ISSN
0932-4569
Volume/pages
169:3(2013), p. 468-489
ISI
000325443400005
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 05.06.2013
Last edited 04.10.2017
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