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THE CASE AGAINST COMPULSORY MINIMUM STANDARDS
Author(s) -
Bowbrick P.
Publication year - 1977
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1977.tb00862.x
Subject(s) - legislator , production (economics) , legislation , quality (philosophy) , business , economics , commerce , public economics , microeconomics , law , philosophy , epistemology , political science
Legislation to forbid the sale of goods that do not meet minimum standards imposes substantial costs on producers, distributors and consumers, but the main benefit, a reduction in search costs, is unimportant unless the standard affects health or safety. Benefits also arise when someone other than the consumer bears the cost of inferior goods. In the longer run, production levels and methods may change but economic costs will probably remain above the free market levels. In the short or long run consumers may benefit by being able to buy better quality goods at the same price, but this is unlikely so the onus is on the legislator to justify imposing compulsory minimum standards.