Demand and cost impacts of the 2�mm technology program in the US motor-vehicle market
AbstractWe assess the impact on demand and producers' costs of a new technology implemented in the US auto industry, the 2�mm program. This is a fascinating case partially because of the unique collaboration among public agencies and a consortium of manufacturers and universities. Using a type of hedonic price model for demand, we show that the new technology was responsible for a short-lived increase in demand for vehicles produced by US automakers at increased producers' costs. Firms that refused to participate in the consortium attained smaller net gains implementing the technology independently. Overall, our approach differs from that of previous analysts in that we (1) separate demand from supply, (2) employ a comprehensive vehicle database, spanning 1981-1998 data, including data on virtually all vehicle models sold in the USA, as well as data on plants' and producers' technology characteristics, and (3) rely on sales and production data rather than plant data. Also, we quantify the cost of not participating in the consortium.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 14 (2005)
Issue (Month): 7 ()
Contact details of provider:
Web page: http://www.tandfonline.com/GEIN20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Isely & Gerald Simons, 2002. "Global Influences on U.S. Auto Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(1), pages 25-34.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
- Maurice Cassier & Dominique Foray, 2002. "Public Knowledge, Private Property and the Economics of High-tech Consortia," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 123-132.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.