FHCE 5100 Lecture Notes - Lecture 1: Preempt, Marginal Utility, The Strongest

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 5100
• Professor: Moorman

Document Summary

The go(cid:448)er(cid:374)(cid:373)e(cid:374)t"s effort to e(cid:374)ha(cid:374)(cid:272)e the e(cid:272)o(cid:374)o(cid:373)i(cid:272) (cid:449)ell-being of consumers. Policies can be implemented at the local, state, national and international levels. These poli(cid:272)ies (cid:272)a(cid:374) (cid:271)e di(cid:448)ided i(cid:374)to those that i(cid:374)flue(cid:374)(cid:272)e (cid:272)o(cid:374)su(cid:373)ers . Indirectly: altering the way in which a firm interacts with other firms: ex, directly: changing the way in which firms interact with consumers, ex. Direct policies that facilitate consumer decision making through education or information disclosure: mandating labels on food (class) This (cid:449)orks (cid:271)est for : consumers who like new information undaunted by uncertainty, adaptive and not affected by others actions. Preempt choice by forcing firms to provide/consumers to accept prescribed levels of quality or price: banning certain food additives (class) Because it is publicly published i benefit by being able to also use it to help study. Differences exist amongst consumers so it is difficult to generalize about their behavior. It is hard to create a market environment that maximizes benefits while minimizing risks.