Hans Weemaes and Dr. Luke Wainscoat Coauthor Whitepaper on the Economics of Charging Consumer Fees in Australia
Principals Hans Weemaes and Dr. Luke Wainscoat recently coauthored a whitepaper on the economics of charging consumer fees against the backdrop of cost pressures and regulatory scrutiny over fees in Australia.
The authors find that charging a separate fee is not inherently undesirable from an economic perspective. When consumers understand the fees they are likely to incur and can readily compare total prices, competition can discipline a fee just as it disciplines other components of price. However, problems can arise when separating fees makes total prices more difficult to observe, comprehend, and compare, which can weaken the competitive pressure consumers place on those charges.
The full whitepaper, “Can You Justify Your Fees? When Fees Make Economic Sense and How to Set Them for Cost Recovery,” is available below.
