Psychology as well as economic principles plays an essential part in the American automobile industry. Faced with overproduction, huge secondhand stocks, and sharp price competition, many car companies are seeking their individual salvation by tempting the public with new models and thus encouraging continued heavy buying.
This tendency toward new models is only a phase of the severe competition in the business. One company announces a novel appliance or feature. If it gains public favor, all the other companies hasten to adopt it too. Once a new model is finished and on the market,...
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