Ana Isabel Guerra Hernández () (Departament d'Economia Aplicada, Universitat Autonoma de)
Abstract
Using a newly constructed data set, we calculate quality-adjusted price indexes after estimating hedonic price regressions from 1988 to 2004 in the Spanish automobile market. The increasing competition was favoured by the removal of trade restrictions and the special plans for the renewal of the Spanish automobile fleet. We find that the increasing degree of competition during those years led to an overall drop in automobile prices by 20 percent which implied considerable consumer gains thanks to higher market efficiency. Additionally, our results indicate that loyalty relevance and discrepancies in automobile reliability declined during those years. This is captured
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Publisher Info
Paper provided by Department of Applied Economics at Universitat Autonoma of Barcelona in its series Working Papers with number
wpdea0707.
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