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Are Consumers Forward-looking? Evidence from Used iPhones

Voraprapa Nakavachara and Kanis Saengchote
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Kanis Saengchote: Chulalongkorn University

PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: This study examines the impact of planned obsolescence - the introduction of new models to make existing models obsolete - on secondary markets for mobile phones. Using data of over 320,000 used iPhones listings on Thailand's largest online marketplace, we document that iPhone prices decrease with age, around 2.8 to 3.2 percent for each passing month. We find no evidence that the price decline accelerates after launches of new models (i.e. obsolescence), lending support to the view that consumer in durable goods markets are rational and forward-looking.

Keywords: Durable Goods; Mobile Phones; Product Obsolescence; Forward-looking Consumer (search for similar items in EconPapers)
JEL-codes: D12 L19 L63 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2017-08, Revised 2017-08
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Published in PIER Discussion Paper Series

Downloads: (external link) Published version, 2017 (application/pdf)

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