Labor Unrest And The Quality Of Production: Evidence From The Construction Equipment Resale Market
- Topics:
- Construction Equipment
- Tags:
- Construction,
- Construction Equipment,
- Resale
FREE Registration is required
Overview: This paper examines the construction equipment resale market to assess whether equipment produced by the world's largest manufacturer of construction machinery, Caterpillar, experienced lower product quality in facilities that underwent contract disputes during the 1990's. Analysis of auction data reveals that resale market participants significantly discounted machines produced in these dispute-affected facilities. Additionally, pieces of equipment produced in facilities undergoing unrest were resold more often, received worse appraisal reports, and had lower list prices. Taken together, the evidence supports the hypothesis that workmanship at dispute-affected facilities declined, and that the resulting impact on the economic quality of the equipment produced was significant.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 270KB | Date: Apr 2006 | Pages: 51
People who downloaded this item also downloaded
![]() |
Assignment Of Contract |
![]() |
Workplace Justice and the Design of Dispute Resolution Clauses |




