2007/11/01 by Kenneth Train, Clifford Winston · 1 citation
Business, Management and Accounting · Energy · Economics, Econometrics and Finance · #Consumer Market Behavior and Pricing #Energy, Environment, and Transportation Policies #Economic and Environmental Valuation
paper · doi:10.1111/j.1468-2354.2007.00471.x
openalex publication_date 2007/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We develop a consumer‐level model of vehicle choice to shed light on the erosion of the U.S. automobile manufacturers' market share during the past decade. We examine the influence of vehicle attributes, brand loyalty, product line characteristics, and dealerships. We find that nearly all of the loss in market share for U.S. manufacturers can be explained by changes in basic vehicle attributes, namely: price, size, power, operating cost, transmission type, reliability, and body type. U.S. manufacturers have improved their vehicles' attributes but not as much as Japanese and European manufacturers have improved the attributes of their vehicles.