This paper looks at the problem of determining the effect on the market valuation of a product because of recalls due to safety defects when the analytical framework is misspecified. Using the car market, the results show that it is difficult, if not impossible, to sort the effect on the price of recalls versus the impact of quality differentials among makes and models.


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    Title :

    Analyzing the impact of recalls on the market valuation of new cars


    Contributors:

    Published in:

    Publication date :

    1989-06-01




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown




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