publication . Preprint . 2009

Heterogeneous car buyers: a stylized fact

Ana M. Aizcorbe; Benjamin Bridgman; Jeremy J. Nalewaik;
Open Access
  • Published: 01 Jan 2009
Using a new dataset, we document a systematic pattern in the demographic characteristics of car buyers over the model year: as vehicle prices fall over the model year, so do buyer incomes. This pattern is consistent with price-insensitive buyers purchasing early in the year, while others wait until prices decline, and suggests price skimming (i.e. intertemporal price discrimination). Such consumer heterogeneity over the model year raises questions for measuring quality improvements in new goods.
free text keywords: Automobiles - Prices ; Consumer behavior
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