AUTOMOBILE AIR BAGS IN THE 1990S: MARKET FAILURE OR MARKET EFFICIENCY?

This article seeks to explain the recent growth in the adoption of air bags in new automobiles. This analysis focuses on market forces, that is, consumers' willingness to pay for air bags and automakers' responsiveness to consumers' willingness to pay. It was found that air bags were offered by automakers because consumers were willing to pay for them -- increasingly willing as information about actual experiences with air bags spread through the media and friends. Thus, in general, the market for air bags worked efficiently. Doubt has again been placed on the potential social value of automobile safety regulation and the efficacy of nonexperimental safety information campaigns.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00222168
• Corporate Authors:

  University of Chicago Press

  1427 E. 60th Street
  Chicago, IL  United States  60637-2954
• Authors:
  • Mannering, F
  • Winston, C
• Publication Date: 1995-10

Language

• English

Media Info

• Features: References; Tables;
• Pagination: p. 265-279
• Serial:
  • Journal of Law and Economics
  • Volume: 38
  • Publisher: University of Chicago Press
  • ISSN: 0022-2168

Subject/Index Terms

• TRT Terms: Air bags; Consumer preferences; Market assessment; Vehicle safety
• Old TRIS Terms: Automobile safety characteristics; Media
• Subject Areas: Highways; Vehicles and Equipment; I91: Vehicle Design and Safety;

Filing Info

• Accession Number: 00714697
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 4 1995 12:00AM