Vehicle Choice Behavior and the Declining Market Share of U.S. Automakers

29 Pages Posted: 13 Dec 2007

See all articles by Kenneth E. Train

Kenneth E. Train

affiliation not provided to SSRN

Clifford Winston

AEI-Brookings Joint Center for Regulatory Studies

Abstract

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.

Suggested Citation

Train, Kenneth E. and Winston, Clifford, Vehicle Choice Behavior and the Declining Market Share of U.S. Automakers. International Economic Review, Vol. 48, Issue 4, pp. 1469-1496, November 2007. Available at SSRN: https://ssrn.com/abstract=1071240 or http://dx.doi.org/10.1111/j.1468-2354.2007.00471.x

Kenneth E. Train (Contact Author)

affiliation not provided to SSRN

Clifford Winston

AEI-Brookings Joint Center for Regulatory Studies ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
12
Abstract Views
882
PlumX Metrics