Add to ORKGWe evaluate the effect of vehicle recalls on vehicle transactions in the second-hand market. Using a rich dataset of Dutch vehicle registrations, we exploit the quasi-experimental variation in recalls across nearly-identical cars. We find strong heterogeneities across market segment: vehicles with a lower (higher) list price or some (zero) defects experience an increase (decrease) in transactions after a recall. Based on our theoretical model, this suggests that recalls increase sorting in low-end markets, yet exacerbate adverse selection in high-end markets. Our results shed light on the effect of information arrival in markets subject to uncertainty and information asymmetries.JEL Classification: D12, L15, L6
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
When choosing auction mechanisms sellers can decide how much information to reveal to buyers regardi...
[[abstract]]We examine 269 non-automotive product recall announcements that were published in the Wa...
We examine 1460 product recalls that were announced by U.S Official Agencies between January 1990 an...
The number of automobile recalls in the U.S. has sharply increased in the last 2 decades, and the nu...
As a result of an information shock, when new consumer information becomes available in a market cha...
This research conducts an empirical study on\ud car recalls in the US market. The research uses seco...
The last two decades have witnessed a dramatic increase in the number of product-harm crises. Conseq...
Using bid data from 8,000 new and used Chevrolet Corvettes sold on eBay, this paper empirically test...
We examine empirically whether individuals evaluating used cars efficiently aggregate all relevant i...
The impact of automobile recalls on stock prices hasn’t been investigated on a large scale since the...
Since the pioneering work of Akerlof (1970), economists have been aware of the adverse selection pro...
The number of automobile recalls in the U.S. has substantially increased over the last two decades, ...
The lemons model assumes that owners of used cars have an informational advantage over potential buy...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
When choosing auction mechanisms sellers can decide how much information to reveal to buyers regardi...
[[abstract]]We examine 269 non-automotive product recall announcements that were published in the Wa...
We examine 1460 product recalls that were announced by U.S Official Agencies between January 1990 an...
The number of automobile recalls in the U.S. has sharply increased in the last 2 decades, and the nu...
As a result of an information shock, when new consumer information becomes available in a market cha...
This research conducts an empirical study on\ud car recalls in the US market. The research uses seco...
The last two decades have witnessed a dramatic increase in the number of product-harm crises. Conseq...
Using bid data from 8,000 new and used Chevrolet Corvettes sold on eBay, this paper empirically test...
We examine empirically whether individuals evaluating used cars efficiently aggregate all relevant i...
The impact of automobile recalls on stock prices hasn’t been investigated on a large scale since the...
Since the pioneering work of Akerlof (1970), economists have been aware of the adverse selection pro...
The number of automobile recalls in the U.S. has substantially increased over the last two decades, ...
The lemons model assumes that owners of used cars have an informational advantage over potential buy...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
When choosing auction mechanisms sellers can decide how much information to reveal to buyers regardi...
[[abstract]]We examine 269 non-automotive product recall announcements that were published in the Wa...