Crash Test Dummies? The Impact of Televised Automotive Crash Tests on Vehicle Sales and Securities Markets

Broadcasts of Insurance Institute for Highway Safety high-speed automotive crash tests on NBC's Dateline do not affect either market shares or stock prices. However, injury claims within a market class are highly correlated with crash test ratings. Inattention to the tests may be a consequence of the manner in which the crash tests have been presented and because the crashworthiness of the U.S. vehicle fleet is positively correlated with consumer estimates of expected vehicle safety.

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