TY  - GEN
AB  - When purchasing a car in Switzerland, consumers can consult three quality labels. First, a reliability label provides the probability that a given car will have a breakdown in the next year. Second, an energy efficiency label, based on fuel consumption and carbon dioxide emissions, ranks cars from A to G. Third, a safety label, based on crash tests, ranks cars from five to one stars. The aim of this paper is to establish whether these labels have an impact on the price of new cars in Switzerland. Using a hedonic regression model, we show that the reliability label influences the price. More precisely, a decrease by one per thousand of the breakdown’s probability increases, on average, the car price by 639 Swiss francs. For the energy efficiency and the safety labels, the hedonic model attains its limits due to collinearity issues and the question cannot be answered in a satisfactory way.
AD  - Haute école de gestion de Genève, HES-SO Haute Ecole Spécialisée de Suisse Occidentale
AU  - Moresino, Francesco
DA  - 2019-03
DO  - 10.4236/ajibm.2019.93031
DO  - DOI
ID  - 3305
JF  - American Journal of Industrial and Business Management
KW  - Economie/gestion
KW  - hedonic price
KW  - car reliability
KW  - car energy efficiency
KW  - car safety
L1  - https://arodes.hes-so.ch/record/3305/files/Moresino_2019_hedonic_approach.pdf
L2  - https://arodes.hes-so.ch/record/3305/files/Moresino_2019_hedonic_approach.pdf
L4  - https://arodes.hes-so.ch/record/3305/files/Moresino_2019_hedonic_approach.pdf
LA  - eng
LK  - https://arodes.hes-so.ch/record/3305/files/Moresino_2019_hedonic_approach.pdf
N2  - When purchasing a car in Switzerland, consumers can consult three quality labels. First, a reliability label provides the probability that a given car will have a breakdown in the next year. Second, an energy efficiency label, based on fuel consumption and carbon dioxide emissions, ranks cars from A to G. Third, a safety label, based on crash tests, ranks cars from five to one stars. The aim of this paper is to establish whether these labels have an impact on the price of new cars in Switzerland. Using a hedonic regression model, we show that the reliability label influences the price. More precisely, a decrease by one per thousand of the breakdown’s probability increases, on average, the car price by 639 Swiss francs. For the energy efficiency and the safety labels, the hedonic model attains its limits due to collinearity issues and the question cannot be answered in a satisfactory way.
PY  - 2019-03
SN  - 2164-5167
T1  - A hedonic approach to estimate the price of reliability, energy efficiency and safety for new cars in Switzerland
TI  - A hedonic approach to estimate the price of reliability, energy efficiency and safety for new cars in Switzerland
UR  - https://arodes.hes-so.ch/record/3305/files/Moresino_2019_hedonic_approach.pdf
VL  - 2019, vol. 9, no. 3, pp.468-481
Y1  - 2019-03
ER  -