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The Influence on Resale Prices of Labor– Management Disputes in Aircraft Manufacturing

The prospect of being 40,000 feet off the ground in an aircraft manufactured by disgruntled or replacement workers may be unsettling to some, whether the quality of the aircraft has actually been affected or not. Quality campaigns have long played a significant role both in attempts to align employee and management interests, and in consumer marketing. Consumers may respond to a variety of quality concerns, including those triggered by labor unrest or strikes. We analyze the influence of labor–management disputes on the perceived quality of commercial jet aircraft reflected in resale prices.