WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND?

WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND? Recently the National Highway Traffic Administration changed its policy concerning the public announcement of safety‐related automotive recalls. This paper examines whether consumers continue to use recalls as an input in their decision to purchase an automobile. It was found that over the 1977‐81 period, severe recalls adversely affected the demand for the model recalled, while benefiting substitutes of other manufacturers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Economic Inquiry Wiley

WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND?

Economic Inquiry, Volume 21 (3) – Jul 1, 1983

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Publisher
Wiley
Copyright
Copyright © 1983 Wiley Subscription Services, Inc., A Wiley Company
ISSN
0095-2583
eISSN
1465-7295
DOI
10.1111/j.1465-7295.1983.tb00646.x
Publisher site
See Article on Publisher Site

Abstract

Recently the National Highway Traffic Administration changed its policy concerning the public announcement of safety‐related automotive recalls. This paper examines whether consumers continue to use recalls as an input in their decision to purchase an automobile. It was found that over the 1977‐81 period, severe recalls adversely affected the demand for the model recalled, while benefiting substitutes of other manufacturers.

Journal

Economic InquiryWiley

Published: Jul 1, 1983

References

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