JOURNAL ARTICLE

Research: The Unintended Consequences of Right-to-Repair Laws: A model assessing their potential impact suggests manufacturers might flood the market with cheap goods, raise prices, or both.

  • Published In: Harvard Business Review Digital Articles, 2023. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Luyi Yang; Chen Jin; Cungen Zhu 3 of 3

Abstract

The article examines the potential unintended consequences of right-to-repair laws, which aim to make product repairs easier and cheaper by requiring manufacturers to share repair information and parts. Using an economic model focused on durable goods, the research finds that manufacturers may respond strategically by either lowering prices and flooding the market with cheap new products or raising prices while offering free repairs, depending on production costs. These responses can reduce consumer benefits and increase environmental harm, particularly for products with high environmental impact during use, such as cars and appliances. The study advises lawmakers to consider product-specific factors and manufacturer incentives to avoid one-size-fits-all legislation that may undermine consumer welfare and environmental goals.

Additional Information

  • Source:Harvard Business Review Digital Articles. 2023/01, p1
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2023
  • Accession Number:161641611

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