Markets: Preserving Funeral Markets with Ready-to-Embalm Laws
研究了美国39个州的“随时防腐”法律如何通过强制要求所有殡葬服务商配备防腐设施来保护传统殡葬商、抑制竞争,导致火化率下降、价格上升,并建议废除这些反竞争法规。
Thirty-nine states currently have ready-to-embalm laws, which typically require that all firms selling any type of funeral service (even those specializing in cremations) have embalming preparation rooms and all funeral directors be trained as embalmers. Ready-to-embalm laws are designed to preserve the status-quo in funeral markets, thereby protecting currently licensed funeral directors from the ravages of competition. These laws attempt to preserve funeral markets as they existed in the mid-twentieth century, markets that centered on traditional funerals sold by small, full-service funeral homes. The economic chemicals needed to preserve the status quo are harsh, leading to higher funeral prices and often poorer-quality services. The empirical evidence suggests that these laws reduce the cremation rate, the market share of Internet casket retailers, the penetration of national chains, and the number of funeral directors who are immigrants. They also appear to substantially increase the retail price of direct cremations and the cost of traditional funerals. Commissions in several states have recently recommended repealing ready-to-embalm laws, arguing that they are anticompetitive. The evidence presented in this paper should make their recommendations harder to ignore.