Who is Exposed to Gas Prices? How Gasoline Prices Affect Automobile Manufacturers and Dealerships

Meghan R. Busse, Christopher Knittel and Florian Zettelmeyer

No 18610, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Many consumers are keenly aware of gasoline prices, and consumer responses to gasoline prices have been well studied. In this paper, by contrast, we investigate how gasoline prices affect the automobile industry: manufacturers and dealerships. We estimate how changes in gasoline prices affect equilibrium prices and sales of both new and used vehicles of different fuel economies. We investigate the implications of these effects for individual auto manufacturers, taking into account differences in manufacturers' vehicle portfolios. We also investigate effects on manufacturers' affiliated dealership networks, including effects implied by the changes in used vehicle market outcomes.

JEL-codes: L1 L2 L9 Q4 (search for similar items in EconPapers)
Date: 2012-12
New Economics Papers: this item is included in nep-com, nep-ene, nep-ind and nep-tre
Note: EEE IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Meghan R. Busse & Christopher R. Knittel & Jorge Silva-Risso & Florian Zettelmeyer, 2016. "Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships," Quantitative Marketing and Economics, Springer, vol. 14(1), pages 41-95, March.

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Journal Article: Who is exposed to gas prices? How gasoline prices affect automobile manufacturers and dealerships (2016)
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