Peltzman effect peruvian style: The law and economics of recalls for defective products

Gustavo Rodríguez G.; Mariana García M.B. · Ius et Veritas (2020) · DOI: 10.18800/iusetveritas.202001.006

Resumen

The legal system introduces dramatic examples of unintended consequences and the consumer protection system. In this paper, the authors analyze the perverse incentives that a poor design of the rules on recalls to review defective products can generate. Thus, a genuine concern about the consequences advises introducing modifications aimed at achieving consumer welfare.