New Findings Reported by Wesleyan University Describe Advances in Risk Management (Reducing Information Asymmetry Impacts Choices and Improves Safety: An Evaluation of Automotive Crash Testing): Risk Management

2022 FEB 21 (NewsRx) — By a News Reporter – Staff News Editor at Daily Insurance News — The results of the current risk management study have been published. According to reports from Middletown, Connecticut, by the editors of NewsRx, the research said, “Vehicle crash testing mitigates an informational market failure and provides substantial benefits to consumers. Consumers cannot accurately assess vehicle safety, leading automakers to provide it suboptimally. »

Journalists got a citation from the research of Wesleyan University“Crash tests performed by the Insurance Institute for Road Safety represent an attempt to mitigate this market failure. This article presents evidence that automakers have responded by producing safer vehicles and that consumers have increased their purchases of highly rated vehicles. A new identification strategy using the year of redesign of the vehicle is used to assess the impact of the tests on safety.

According to the reporters, the research concluded: “A lower estimate of program benefits is $3000 per vehicle leading to 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 Insurance2022. Journal of Risk and Insurance can be contacted at: Wiley, 111 river street, 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 press correspondents advise that further information may be obtained by contacting Damien Sheehan-Connor, Wesleyan University, Department of Economics, Middletown, Connecticut 06459, United States.

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

(Our reports provide factual information on research and discoveries around the world.)