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Feb. 23, 2017
Buyer beware: With disclosure, you get what you pay for
State regulation of business such as menu item calories, company energy efficiency, and restaurant cleanliness comes at a high cost to government agencies, as well as the businesses themselves. By Daniel E. Ho
Daniel E. Ho
Professor of Law
Stanford Law School
Daniel E. Ho is the William Benjamin Scott and Luna M. Scott Professor of Law at Stanford Law School and a senior fellow at the Stanford Institute for Economic Policy Research
One of the most pervasive beliefs about the regulatory state is that information disclosure is cheap and efficient. With little cost, Energy Star ratings encourage firms to compete on energy efficiency, restaurant grades cause restaurateurs to improve food handling practices, and calorie counts reduce overeating. With such simple market-mimicking cues, we get something for nearly nothing and avoid contentious issues associated with...
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