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Cited by 474

The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.

Are Consumers Myopic? Evidence from New and Used Car Purchases

Open access
Busse, Meghan R, Knittel, Christopher R, Zettelmeyer, Florian·2013·American Economic Review

Abstract

We investigate whether car buyers are myopic about future fuel costs. We estimate the effect of gasoline prices on short-run equilibrium prices of cars of different fuel economies. We then compare the implied changes in willingness-to-pay to the associated changes in expected future gasoline costs for cars of different fuel economies in order to calculate implicit discount rates. Using different assumptions about annual mileage, survival rates, and demand elasticities, we calculate a range of implicit discount rates similar to the range of interest rates paid by car buyers who borrow. We interpret this as showing little evidence of consumer myopia. (JEL D12, H25, L11, L62, L71, L81)

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Metadata

Authors
Busse, M. R., Knittel, C. R., & Zettelmeyer, F.
Venue
American Economic Review
Published
2013-02-01
Volume
103
Issue
1
Pages
220-256
ISSN
0002-8282 (ISSN-L)
OpenAlex
W1975468699
Cited by
474
References
2
FWCI
18.15
Type
journal article
Language
en
Open access
bronze

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