The strategic significance of negative externalities.

Details

• Creators:
  Nagler, Matthew G.
• Corporate Creators:
  The City College of New York, CUNY
• Corporate Contributors:
  United States. Department of Transportation. Research and Innovative Technology Administration
• Subject/TRT Terms:
  • Externalities
  • Elasticity (Economics)
  • Traffic crashes
  • Econometric models
  • Motor vehicle industry
  • Consumer behavior
  • Externalities (Economics)
  • Elasticity (Economics)
  • Consumer behavior
  • Motor vehicle industry--Econometric models
• Publication/ Report Number:
  49111-21-23
• Resource Type:
  Tech Report
• Geographical Coverage:
  United States
• Corporate Publisher:
  University Transportation Research Center
• 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
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/25629/dot_25629_DS1.pdf
• File Type:
  [PDF - 716.87 KB]
• Collection(s):
  University Transportation Centers ; US Transportation Collection
• Main Document Checksum:
  urn:sha-512:b7fdf3fa1d71e4a04020401c79d21d7911c60890c301622f17b6385340cd90a52dc6451846719ec0ef97c38eed87bd0c1ac6bb4da249d1ef5076281258df1208