52 Pages Posted: 18 May 2012
Date Written: May 16, 2012
In this study, we analyze the consumer welfare implications of regulating Rent-to-Own (RTO) transactions. We conclude that the benefits and costs of mandatory disclosure and labeling regulations currently imposed by most states are likely small, and that the effects of imposing a Federal baseline for such regulations would also be relatively small. On the other hand, we conclude that regulations imposed by a handful of states which treat RTO agreements as credit sales, or directly regulate RTO prices, substantially reduce consumer welfare, and should be repealed.
Suggested Citation: Suggested Citation
Beales, Howard and Eisenach, Jeffrey A. and Litan, Robert E., Consumer Welfare Implications of Regulating Rent-to-Own Transactions (May 16, 2012). Available at SSRN: https://ssrn.com/abstract=2060984 or http://dx.doi.org/10.2139/ssrn.2060984