200 / 2024-04-23 09:57:56

Right to Repair and Competition in Durable Goods Markets

competition,sustainable operations,repair,durable goods,after-sales service,environmental impact,pricing

The “right to repair” (RTR) movement calls for government legislation requiring manufacturers to provide repair information, tools, and parts so that consumers can independently repair their products more easily. The initiative has garnered attention globally. Its advocates for the initiative believe that the RTR can break manufacturers’ monopoly on the repair market, benefit consumers, and further help reduce the environmental impact. This study examines those arguments in a competitive setting where two manufacturers compete in the product market. Further, we investigate how the RTR shapes manufacturers’ competition in the product market. To this end, by employing an analytical model, we find that the RTR can generally trigger non-monotone changes in manufacturer competition, manufacturer profit, consumer benefit, and environmental impact.