Product Recalls, Imperfect Information, and Spillover Effects
Lessons from the Consumer Response to the 2007 Toy Recalls
Bibliographic Data
| ID | 19314768 |
|---|---|
| Authors | Seth Freedman (0000-0002-4081-3239, University of Michigan), Melissa S Kearney (0000-0001-8542-1290, National Bureau of Economic Research), Melissa Kearney, Mara Lederman (University of Toronto) |
| Year | 2012 |
| Volume | 94 |
| Issue | 2 |
| Pages | 499-516 |
| Publication date | 2012-05-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press - Journals (PUBLISHER) |
| DOI | 10.1162/rest_a_00162 |
| OpenAlex | W2129152596 |
| Language | EN |
| Citations received | 9 |
| References cited | 21 |
In 2007, the Consumer Product Safety Commission issued 212 recalls of toys and other children's products, a sizable increase from previous years. We investigate changes in toy sales following these recalls. We find that for manufacturers that had recalls, unit sales of the types of toys involved in the recall fell relative to their sales of toys in other categories. We do not find evidence of within-manufacturer spillovers to dissimilar toys. We do, however, find large industry-wide spillovers in the form of sales losses to manufacturers that did not experience any recalls. Our results shed light on how consumers may draw inferences from information about product safety
Advertising · Business · Commission · Economics · Imperfect · Microeconomics · Product (mathematics) · Product category · Recall · Spillover effect · Auditing, Earnings Management, Governance · Marketing · Psychology · Risk Management in Financial Firms
Managing the Message
The role of repugnance in markets
Modelling social risk amplification, harmful products, and product recall as the basis of a risk assessment procedure
Discipline Rankings and University Admission Attractiveness
Reacting to recalls
Social responsibility scandals and trade
When Benefit-Cost Analysis Becomes Optional
The Effect of Information on Market Activity
Digital economy and risk response
| Citations per year | 0.64 |
|---|---|
| Citation span | 2012 - 2025 (14) |
| Highly cited | No |