Regulating product quality benefits consumers in reducing uncertainty and allowing them to economize on search costs. Theoretical analysis suggests that not all consumers benefit to the same extent, with non-poor, less well educated and older people tending to gain most. These conclusions are supported by regression analysis of Eurobarometer data on attitudes to an EU priority to guarantee quality. The results also indicate the essential nature of the EU trade-off with countries having to compromise on their desired outcome when agreeing on a common EU standard. Institutional trust is also a critical factor in determining support for such a standard.
- Economics of Regulation (L510)
- Consumer Protection (D180)