Used car markets: reliability does matter, but do Consumer Reports?

David Yerger

Applied Economics Letters, 1996, vol. 3, issue 2, 67-70

Abstract: In work previously published in Applied Economics, Pratt and Hoffer (1990) did not find a significant effect upon US domestic vehicle resale prices from differences in reliability (maintenance expense) across models. This study, however, utilizes an alternative measure of reliability differences and finds that reliability differences do impact US resale car prices in the manner expected. The finding reinforces the view that used vehicle markets are efficient. In addition, the results suggest that Consumer Reports annual evaluation of used vehicles is not new information which affects resale prices. Instead, resale prices appear to reflect the information in the Consumer Reports evaluations in advance of the announcement's release.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:3:y:1996:i:2:p:67-70

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/135048596356708

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().