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Open Access Publications from the University of California

The Ability of Automakers to Introduce a Costly, Regulated New Technology: A Case Study of Automotive Airbags in the U.S. Light-Duty Vehicle Market with Implications for Future Automobile and Light Truck Regulation

Abstract

A case study was conducted to better understand automaker behavior in response to regulation. In this case, it was found that the potentially costly impact of the rules was largely offset by a variety of automaker behaviors and strategies, and by shifts in consumer demand for safety.

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