New Findings Reported from Wesleyan University Describe Advances in Risk Management (Reducing Informational Asymmetry Impacts Choices and Improves Safety: an Evaluation of Automobile Crash Tests): Risk Management

2022 FEB 21 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Risk Management have been published. According to news reporting originating in Middletown, Connecticut, by NewsRx editors, the research stated, “Vehicle crash tests mitigate an informational market failure and provide substantial benefits to consumers. Consumers cannot accurately assess vehicle safety leading automakers to provide it suboptimally.”

The news reporters obtained a quote from the research from Wesleyan University, “Crash tests performed by the Insurance Institute for Highway Safety represent an attempt to mitigate this market failure. This paper presents evidence that automakers responded by producing safer vehicles and that consumers increased purchases of highly rated vehicles. A novel identification strategy using the year of vehicle redesign is used to evaluate the tests’ safety impact.”

According to the news reporters, the research concluded: “A lower-bound estimate of program benefits is $3000 per vehicle resulting in an annual reduction of 1650 fatalities.”

This research has been peer-reviewed.

For more information on this research see: Reducing Informational Asymmetry Impacts Choices and Improves Safety: an Evaluation of Automobile Crash Tests. Journal of Risk and Insurance, 2022. Journal of Risk and Insurance can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Risk and Insurance - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6975)

Our news correspondents report that additional information may be obtained by contacting Damien Sheehan-Connor, Wesleyan University, Dept. of Economics, Middletown, CT 06459, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/jori.12375. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.