Heterogeneous car buyers: a stylized fact
Ana Aizcorbe (),
Benjamin Bridgman () and
Jeremy J. Nalewaik
No 2009-12, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)
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.
Keywords: Automobiles - Prices; Consumer behavior (search for similar items in EconPapers)
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Journal Article: Heterogeneous car buyers: A stylized fact (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2009-12
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