Technology Mandates and Welfare: The Case of Airbags

KSE University hosts a research talk by Sergiy Golovin, PhD — Founder of Odyssean Venture Lab, former Applied Scientist at Keystone AI and Economist at Amazon.

The talk examines how regulation shapes technology adoption and market outcomes. The case focuses on the U.S. airbag mandate announced in 1991, which required all new cars to be equipped with airbags by 1998.

Using a structural model of consumer choice and firms’ adoption decisions, combined with a dataset covering 2,600+ car models over 13 years, the research shows how policy accelerated adoption beyond market equilibrium. The findings highlight both gains and trade-offs: earlier and more affordable access to safety technology increased overall consumer welfare, while limiting differentiation for firms and creating uneven effects across consumer groups.

This session is relevant for those working with public policy, economics, regulation, and technology markets.

Format: online

Join via Zoom: https://us06web.zoom.us/j/86162562481?pwd=JTQkzJFkez0QSWIboKISmUiEXs7aXg.1&jst=2