Automobile Air Bags in the 1990s: Market Failure or Market Efficiency?

B-Tier
Journal: Journal of Law and Economics
Year: 1995
Volume: 38
Issue: 2
Pages: 265-79

Authors (2)

Mannering, Fred (not in RePEc) Winston, Clifford (Brookings Institution)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article seeks to explain the recent growth in the adoption of air bags in new automobiles. Our analysis focuses on market forces, that is, consumers' willingness to pay for air bags and automakers' responsiveness to consumers' willingness to pay. We find 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. Copyright 1995 by the University of Chicago.

Technical Details

RePEc Handle
repec:ucp:jlawec:v:38:y:1995:i:2:p:265-79
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29