Engers, Maxim; Hartmann, Monica; Stern, Steven - In: International Journal of Industrial Organization 27 (2009) 2, pp. 250-263
We model the hazard rate for car ownership spells. Our model allows us to distinguish among different types of adverse selection effects by observing the type of unobserved heterogeneity across owners of the same car. Our empirical results strongly suggest that there is a lemons effect because...