The Demand for Consumer Durables in the United Kingdom in the Interwar Period

Abstract

Distinct diffusion curves are identified by model type and significant differences in regional motor car ownership in the interwar U.K. economy. We assess the viability of applying mass production strategies such as Ford and General Motors pursued in America. Given the demand-side constraints present in the U.K. market, the price reductions made possible by the exploitation of economies of scale were insufficient to create a mass market. Hence, the relatively low levels of ownership achieved can be seen as a rational response to the constraints perceived by firms.