Details:

Creators:
Nagler, Matthew G.
Corporate Creators:
The City College of New York, CUNY
Corporate Contributors:
United States. Dept. of Transportation. Research and Innovative Technology Administration
Subject/TRT Terms:
[+]
Consumer Behavior
Elasticity (Economics)
Externalities (Economics)
Motor Vehicle Industry--Econometric Models
Econometric Models
Externalities
Motor Vehicle Industry
Traffic Accidents

Publication/ Report Number:
49111-21-23
Resource Type:
Tech Report
Geographical Coverage:
United States
Corporate Publisher:
University Transportation Research Center
NTL Classification:
NTL-SAFETY AND SECURITY-Highway Safety
Abstract:
Negative externalities have competitive relevance in a market when they have selective impacts – as, for

example, when a product in use imposes greater costs on consumers of rival products than on other people.

Because managers have discretion over aspects of product design that affect external costs, the externality in

such cases may be viewed as a strategic variable. This paper presents evidence of the existence of

competitively-relevant negative externalities. I introduce a metric for the externality’s competitive effect, the

external cost elasticity of demand, which I estimate econometrically using data from the motor vehicle

industry. Managerial implications are considered.


Format:
PDF
Collection(s):
US Transportation Collection
University Transportation Centers
Main Document Checksum:
[+]
urn:sha256:7cb5d79ca155d1162d9404d75683cf2c4c5e2151598a7a8d389637a5a8a86629
File Type:

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