Does Contract Disclosure Matter? - 10.1628/093245612799440122 - Mohr Siebeck

Florencia Marotta-Wurgler

Does Contract Disclosure Matter?

Volume 168 () / Issue 1, pp. 94-119 (26)

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Disclosure has long been the preferred regulatory approach to prevent one-sided standard-form contract terms, but its efficacy is unclear. For disclosure to be effective, it must increase readership of contracts and, conditional on reading, affect decisions. I use clickstream data on software shoppers to test these two conditions in the online context. I find that the prominence of disclosure of a software license agreement has little effect on readership. Moreover, those who read the license are equally likely to purchase the product regardless of its one-sidedness. Mandatory online disclosure regimes thus seem unlikely to impose competitive pressure on sellers.

Florencia Marotta-Wurgler No current data available.