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Consumer Protection Laws: Violator Detection and Enforcement Strategy
Priscilla A. Labarbera and Edward L. Melnick
Vol. 33, No. 10 (Oct., 1987), pp. 1348-1356
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/2632221
Page Count: 9
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A methodology is proposed for both the assessment and enforcement of consumer protection laws and regulations. An assessment model is presented to determine the effect of a law (e.g., violation rate, characteristics and/or profile of violators) and then a cost efficient law enforcement strategy is described that is aimed at the violator population identified by the assessment model. This methodology consists of a short enforcement campaign, directed mainly against the violators, and is then followed by an inexpensive maintenance program. Data for the assessment model are collected based upon an interrupted stratified time series design where the stratification scheme is selected by satisfying a minimum variance criterion. The stratification rule may vary so that a dynamic representation of the changing characteristics of the violator population is obtained.
Management Science © 1987 INFORMS