If not the information will not influence consumer's choice. The products will not compete on their true and important characteristics. The competitive free market will fail in its goals. 5 Consumers can get the information necessary to make choices among the competitors before the purchase from disclosures on the product, from advertising, from others who collect information about the product and publish it, and from others who try the product and publish reviews. 6 Take the purchase price of a VCR as an example.
Consumers can go to the store and see the prices marked on the shelves.
After gathering the information, the consumer chooses. 7 One of the terms of purchase on which products compete for consumers' purchases is the warranty. The warranty is one of the terms of the sale. In the case of new cars for example, the warranty is displayed on the window, and there are vigorous advertisements on television and in other media. It is competition over warranties with information given to consumers before the sale that causes good warranties to be offered in the competition among products for the consumers choice.