Abstract
An approach for diagnosing and prescribing remedies to consumer information problems is proposed. It is contended that the appropriate policy stance to take for dealing with the consumer information situation in a market will depend on several factors, including (1) the amount of harm suffered by consumers, (2) the extent to which consumers rely on extrinsic information cues versus intrinsic cues, (3) the accuracy of available information, (4) the number of “expert” consumers active in the market, and (5) the cost to consumers of acquiring information.

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