Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors

Mark Grinblatt, Matti Keloharju and Seppo Ikaheimo

No 10226, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his neighbors, particularly purchases in the recent past and by neighbors who are geographically most proximate. There is little evidence that emotional biases, like envy or an urge to conform, lie behind the interpersonal influence in automobile consumption. The most reasonable alternative explanation for these findings is some form of information sharing among neighbors.

JEL-codes: D1 D8 (search for similar items in EconPapers)
Date: 2004-01
New Economics Papers: this item is included in nep-geo, nep-mic and nep-ure
Note: AP
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Citations: View citations in EconPapers (15)

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Working Paper: Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors (2003)
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