Journal Article

Markets for safety : product recalls yield mixed effects on firms


Abstract: There have been a number of high-profile cases of product recalls recently. Those incidents suggest that the marketplace generally works as economists would predict. Firms that produce defective goods usually take a hit to their reputation and their bottom line, though there are exceptions.

Keywords: Costs (Law); Markets;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2010

Volume: 14

Issue: 2Q

Pages: 16-18