By restricting bidders to be qualified dealers, wholesale automobile auctions exclude the bidders who place the highest value on the vehicles: consumers. This paper provides an explanation for this puzzling entry restriction by modeling the inventory-management decision of a firm. If an...

Some private firms collect data which could greatly improve the capacity of governments to take better policy decisions and to increase social welfare. Business-to-Government (B2G) data sharing can result in substantial benefits for society and save costs to governments. The current volume of...

This paper addresses the role of product liability for the emergence and development of smart products such as autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market introduction and market penetration of such smart products....

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

Prior to the arrival of digital car data, car manufacturers had already partly foreclosed the maintenance market via franchising contracts with a network of exclusive official dealers. EU regulation endorsed this foreclosure but mandated access to maintenance data for independent service...

Using loan-level data on millions of used-car transactions across hundreds of lenders, westudy the consumer response to exogenous variation in credit terms. Borrowers offeredshorter maturity decrease expenditures enough to offset 60% to 90% of the monthlypayment increase. Most of this is driven...

This paper addresses the role of product liability for the emergence and development of smart products such as autonomous vehicles (AVs). We analyze how the liability regime affects innovative activities, as well as the timing of market introduction and market penetration of such smart products....

A central question in the analysis of fuel-economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on consumer valuation of fuel economy from a natural experiment. We examine the short-run equilibrium effects of an exogenous restatement of...

This paper studies the within-model-year pricing and production of new automobiles. Using new monthly data on U.S. transaction prices, we document that for the typical new vehicle, prices typically fall over the model year at a 9.2 percent annual rate. Concurrently, both sales and inventories...