*Virginia Commonwealth University.
WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND?
Article first published online: 28 SEP 2007
Volume 21, Issue 3, pages 444–447, July 1983
How to Cite
REILLY, R. J. and HOFFER, G. E. (1983), WILL RETARDING THE INFORMATION FLOW ON AUTOMOBILE RECALLS AFFECT CONSUMER DEMAND?. Economic Inquiry, 21: 444–447. doi: 10.1111/j.1465-7295.1983.tb00646.x
- Issue published online: 28 SEP 2007
- Article first published online: 28 SEP 2007
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.