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Competition Buzz: The Foundations of Unfair Terms Regulation: An Alternative Economic Analysis

 |  August 2, 2016

By: Roger Merino

The new Peruvian “Code of Protection and Defense of Consumers” has been blamed of “socialist” and “fascist” because it prohibits unfair terms. For the critics this regulation would be paternalistic and inefficient by limiting the consumers “right to choice.” These critiques are based on an orthodox economic analysis rooted in neoclassical economics on one hand, and Austrian economic on the other hand. The aim of this essay is to criticize the conservative critique by demonstrating that there are alternative economic movements that provide strong economic, social and ethic foundations for the regulation of unfair terms.

Full Content (in Spanish): SSRN

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