Document Type

Working Paper

Publication Date

12-31-2019

SSRN Discipline

LSN Subject Matter eJournals; ERN Subject Matter eJournals; Financial Economics Network; Sustainability Research & Policy Network; Economics Research Network; Legal Scholarship Network; Microeconomic Theory eJournals; Entrepreneurship Research & Policy Network; Law School Research Papers - Legal Studies; Corporate Governance Network; Law & Society eJournals; Law & Society: Private Law eJournals; SRPN Subject Matter eJournals; Accounting Research Network; Social Responsibility of Business eJournals

Abstract

How do consumers hold sellers accountable and enforce market norms This Article contributes to our understanding of consumer markets in three ways First The Article identifies the role of a small subset of consumers "” the titular "˜nudniks' "” as engines of market discipline Nudniks are those who call to complain speak with managers post online reviews and file lawsuits Typified by an idiosyncratic utility function and personality traits nudniks pursue action where most consumers remain passive Although derided in courtrooms and the court of public opinion we show that nudniks can solve consumer collective action problems thereby leading to broad market improvementsbrbrSecond the Article spotlights a disconcerting development Sellers' growing usage of Big Data and predictive analytics allows them to identify specific consumers as potential nudniks and avoid selling to or disarm them before they can draw attention to sellers' misconduct The Article therefore captures an understudied problem with Big Data tools sellers can use these tools to shield themselves from market accountability brbrFinally the Article evaluates a menu of legal strategies that would preserve the benefits of nudnikbased activism in light of these technological developments In the process we revisit the conventional wisdom on the desirability of form contracts mandatory arbitration clauses defamation law and standing doctrines

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