Planned Obsolescence
Planned Obsolescence
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DOI:
10.4135/9781412994248.n408
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发表时间:
2014
期刊:
影响因子:
--
通讯作者:
Tim Cooper
中科院分区:
文献类型:
--
作者:
Tim Cooper
This paper shows that large companies in competitive markets have a strong incentive to apply the strategy of planned obsolescence to boost profits. Planned obsolescence means reducing the expected useful life of products so that customers will have to make earlier replacement purchases. It is a strategy of hidden product deterioration or hidden price increase. It works only if markets are not transparent, especially if consumers have no information about the total cost of ownership. Most consumer markets of durable goods suffer from a lack of transparency and information. The impact of planned obsolescence on society and environment is considerable: Consumers lose approximately 7% of their purchasing power, energy and resources are wasted and additional garbage is produced. Main beneficiaries of this strategy are the few owners of large companies. This paper shows that the existing economic theory of planned obsolescence is based on unrealistic assumptions and hence leads to unrealistic results, impeding the introduction of appropriate legislation to this day. The paper recommends the mandatory introduction of a product label indicating key product information, an extension of the warranty period, the introduction of a minimum storage period for spare parts and reducing advertising by law.