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Author Archsmith, James, author

Title Attribute substitution in household vehicle portfolios / James Archsmith, Kenneth Gillingham, Christopher R. Knittel, David S. Rapson
Published Cambridge, Mass. : National Bureau of Economic Research, 2017

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Description 1 online resource (41 pages) : illustrations
Series NBER working paper series ; no. 23856
Working paper series (National Bureau of Economic Research) ; no. 23856.
Summary Household preferences for goods with a bundle of attributes may have complex substitution patterns when one attribute is changed. For example, a household faced with an exogenous increase in the size of one television may choose to decrease the size of other televisions within the home. This paper quantifies the extent of attribute substitution in the context of multi-vehicle households. We deploy a novel identification strategy to examine how an exogenous change in the fuel economy of a kept vehicle affects a household's choice of a second vehicle. We find strong evidence of attribute substitution in the household vehicle portfolio. This effect operates through car attributes that are correlated with fuel economy, including vehicle footprint and weight. Our findings suggest that attribute substitution exerts a strong force that may erode a substantial portion of the expected future gasoline savings from fuel economy standards, particularly those that are attribute-based. Elements of our identification strategy are relevant to a broad class of settings in which consumers make sequential purchases of durable portfolio goods
Notes "September 2017."
Bibliography Includes bibliographical references (pages 26-27)
Notes Online resource; title from http://www.nber.org/papers/w23856 viewed October 03, 2017
Subject Automobiles -- Purchasing -- Psychological aspects
Automobiles -- Fuel consumption.
Gasoline -- Prices.
Automobiles -- Fuel consumption.
Automobiles -- Purchasing -- Psychological aspects.
Gasoline -- Prices.
Transportation: Demand, Supply, and Congestion Travel Time Safety and Accidents Transportation Noise.
Automobiles Other Transportation Equipment Related Parts and Equipment.
Form Electronic book
Author Gillingham, Kenneth, author.
Knittel, Christopher R., author.
Rapson, David, author.
National Bureau of Economic Research, publisher.