Premium
CONSUMER DEMAND FOR VEHICLE SAFETY: AN EMPIRICAL STUDY
Author(s) -
Mccarthy Patrick S.
Publication year - 1990
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1990.tb01237.x
Subject(s) - ceteris paribus , purchasing , crashworthiness , economics , crash , index (typography) , vehicle safety , set (abstract data type) , econometrics , consumer safety , business , public economics , marketing , microeconomics , computer science , engineering , automotive engineering , management , world wide web , programming language
Although numerous studies on the effects of vehicle safety regulation exist, few are devoted to consumer demands for vehicle safety. This study uses an extensive data set combining vehicle specific information with responses from a national household survey of new car buyers to estimate individual demand for safety. It finds, ceteris paribus, purchase probability rises with an increase in safety features. In particular, an index of vehicle crashworthiness is a strong determinant of purchase decisions. The results favor a policy of posting crash test results and suggest that passive restraint systems enhance the likelihood of purchasing a given model.