EconPapers    
Economics at your fingertips  
 

Cold Houses in Warm Climates and Vice Versa: A Paradox of Rational Heating

David Friedman ()

Journal of Political Economy, 1987, vol. 95, issue 5, 1089-97

Abstract: Houses in cold climates are kept warmer in winter than those in warm climates, des pite the greater cost of heating in colder climates. It is shown that this is not only consistent with, but also implied by, rationality. The contrary intuition is based on a confusion between average and ma rginal cost. The same analysis implies that it is rational to keep th e thermostat setting constant throughout the heating season rather th an changing it with changes in external temperature. Copyright 1987 by University of Chicago Press.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://dx.doi.org/10.1086/261503 full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:v:95:y:1987:i:5:p:1089-97

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-20
Handle: RePEc:ucp:jpolec:v:95:y:1987:i:5:p:1089-97