Moral hazard arises in quot;diagnosis-curequot; markets such as auto repair and health care when sellers have an incentive to misrepresent a buyer's condition in order to increase demand for the treatments they supply. This article examines the market for California vehicle emission inspections....

Using data from the US automobile market, we empirically examine the link between competition and innovation. Consistent with a large literature, we use patent counts as a measure of innovation. The combination of the US market's economic importance, market dynamics, and the significant...

Retailers co-locate with rivals to take advantage of economies of agglomeration even though co-location implies greater competition. Using data on all new car transactions registered in Ohio from 2007 to 2014, we estimate a structural model of consumer search for spatially dif- ferentiated...

Objective - A study has been conducted to scrutinize the vehicle production and sales by segment in ASEAN.Methodology/Technique - The study is prepared grounded on primary evidence and secondary material. The primary evidences have composed through oral interview from stalwarts of automotive...

The need for regulatory solutions for access to in-vehicle data and resources of connected cars is one of the big controversial and unsolved policy issues. Last year the EU revised the Motor Vehicle Type Approval Regulation which already entailed a FRAND-like solution for the access to repair...

We examine used car dealers' roles as intermediaries. We present empirical evidence supporting that cars sold by dealers have higher quality: (1) dealer transaction prices are higher than private market prices and this dealer premium increases in the age of the car as a ratio and is hump-shaped...

Many countries have adopted policies designed to reduce CO2 emissions from road vehicles. Taxes linked to the CO2 emissions rate or the fuel economy of a vehicle (which is inversely related to its CO2 emissions rate) are examples of such policies. These taxes are usually imposed on new vehicles,...

This paper studies equilibrium dynamics in consumer durable goods markets after aggregate credit shocks. We introduce two novel features into a general-equilibrium model of durable consumption with heterogeneous households facing idiosyncratic income risk and borrowing constraints: (i)...

To what extent have national fiscal policies contributed to the decarbonisation of newly sold passenger cars? We construct a simple model that generates predictions regarding the effect of fiscal policies on average CO2 emissions of new cars, and then test the model empirically. Our empirical...

Competitive industries respond to positive demand-side and negative supply-side shocks in predictable ways. Prices will rise and, under some conditions, margins along with them. Margins may rise because of supply shocks, but they do so in competitive markets without collusion among producers....