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Spring 2005

ISSN 0890-913X

Volume 20, Number 2

Categories: Spring 2005 | Market Studies

State Regulations and E-Commerce: The Case for Internet Casket Sales in Oklahoma

Daniel Sutter, University of Oklahoma

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StateRegulationsandE-Commerce:TheCaseforInternetCasketSalesinOklahoma*DanielSutterUniversityofOklahomaDeathandtaxesaretheonlytwothingswhichareinevitableinlife.Althoughtaxesfallnaturallyinthedomainofeconomics,economistshavepaidscantattentiontothedeathcareindustry,despiteextensiveregulationoftheindustrybythestates.Thepotentialexploitationofgrievingfamilymembersprovidestherationaleforregulationoftheindustry,yetsubstantialanecdotalevidenceofconsumers=overpayingforfuneralservicesunderregulationabounds.SuchallegationsmotivatedtheFederalTradeCommissiontoissuetheFuneralRulein1984toencouragepricecompetitionintheindustry.Casketsrepresentthelargestsinglecomponentoffuneralcosts.Funeralhomeshavetraditionallysoldcasketsbundledwithfuneralservices,butindependentcasketretailershaveproliferatedinthepastdecade.Andwiththeemergenceofe-commerceinthepastdecade,retailersnowsellcasketsviatheInternet.Asof2002,tenstatesallowedonlylicensedfuneraldirectorstosellcaskets,preventingtheentryofindependentcasketretailersinthesestates.___________________________*ThepaperisbasedonresearchbegunwhileIservedasanexpertwitnessfortheInstituteforJusticeinPowersv.Harris.IthankClarkNeilyforprovidingmewiththefuneralhomepricelistsandcomplaintrecordsfromtheOklahomaStateBoardofEmbalmersandFuneralDirectorsusedinthispaper,KimPowersandDennisBridgesforassistinginmatchingcasketmodelsfromthefuneralhomepriceliststoMemorialConceptsOn-Line=spricelist,andBruceYandleandarefereeforhelpfulcomments.Althoughthemajorityofpolicyattentionregardinge-commercehasfocusedontaxationandtheInternet(Goolsbee,2001),e-commerceofferstheprospectofunderminingmanyanti-competitivestateregulations(Mallinger,2001).

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Metadata [hide]

Title	State Regulations and E-Commerce: The Case for Internet Casket Sales in Oklahoma
Authors/Creators:	Daniel Sutter, University of Oklahoma
Year:	2005
Volume:	20
Number:	2
Pages:	27 - 42
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Consumer Behaviour, Trade, Government policy, Economic Theory

Citation:
Sutter, Daniel / 2005. "State Regulations and E-Commerce: The Case for Internet Casket Sales in Oklahoma." The Journal of Private Enterprise, 20(2): 27-42.