Market responses to publicly-provided information: the case of automative safety

Over the last 25 years the federal government has become increasingly involved in the provision of information on automobile quality and safety. Its release of National Highway Traffic Safety Administration data on occupant crash survivablity is a prominent example. This paper examines the impact of the agency's crash test results on the sales growth of tested automobile lines. Finding no impact, the crash data is then compared to privately collected insurance industry data on actual bodily injury claims by car line. these data sets show little consistency. based on these findings, we conclude that consumers's apparent disregard of government crash test data may well be rational.