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82 records from EconBiz based on author Name
1. Estimating the Effect of Salience in Wholesale and Retail Car Markets
abstractWe investigate whether the first digit of an odometer reading is more salient to consumers than subsequent digits. We find that retail transaction prices and volumes of used vehicles drop discontinuously at 10,000-mile odometer thresholds, echoing effects found in the wholesale market by Lacetera, Pope and Sydnor (2012). Our results reveal that retail consumers devote limited attention to evaluating vehicle mileage, and that this drives effects in the wholesale market. We estimate the inattention parameter implied by the price discontinuities. In addition, our results suggest that estimating consumer-level structural parameters using data from an intermediate market can give misleading results
Busse, Meghan R.; Lacetera, Nicola; Pope, Devin G.; Silva-Risso, Jorge M.; Sydnor, Justin R.;2021
Availability: Link
2. Who Wins the Olympic Games : Economic Development and Medal Totals
abstractThis paper examines determinants of Olympic success at the country level. Does the U.S. win its fair share of Olympic medals? Why does China win 6% of the medals even though it has 1/5 of the world's population? We consider the role of population and economic development in determining medal totals from 1960-1996. We also provide out of sample predictions for the 2000 Olympics in Sydney
Bernard, Andrew B.; Busse, Meghan R.;2021
Availability: Link
3. $1000 Cash Back : Asymmetric Information in Auto Manufaturer Promotions
abstractAutomobile manufacturers make frequent use of promotions that give cash-back payments. Two common types of cash-back promotions are rebates to customers, which are widely publicized to potential customers, and discounts to dealers, which are not publicized. While the payments nominally go entirely to one party or the other, the real division of the manufacturer-supplied surplus between dealer and customer depends on what price the two parties negotiate. These two types of promotions thus form a natural experiment of the effect of information asymmetry on bargaining outcomes: in the customer rebate case, the parties are symmetrically informed about the availability of the manufacturer-supplied surplus, while in the dealer discount case, the dealer will generally have an informational advantage. The aim of this paper is to compare, in appropriate settings and with appropriate controls, the price outcomes of transactions conducted under these two types of promotions in order to empirically quantify the effect of this information asymmetry. We show that customers obtain approximately 80% of the surplus in cases when they are likely to be well-informed about the promotion (customer rebate), and approximately 35% when they are likely to be uninformed (dealer discount). For a promotion of average size, this difference translates to customers being worse off by $500 when they do not know that the promotion is being offered
Busse, Meghan R.; Zettelmeyer, Florian; Silva-Risso, Jorge M.;2021
Availability: Link
4. Repairing the damage : the effect of price expectations on auto-repair price quotes
abstractIn this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be well-informed, uninformed, or poorly informed about market prices. We find that repair shops quote higher prices to callers who cite a higher expected price. We find that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention an expected price for the repair. Finally, we find that repair shops are more likely to offer a price concession if asked to do so by a woman than a man.
Busse, Meghan R.; Israeli, Ayelet; Zettelmeyer, Florian;2013
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability:
Link 5. Repairing the Damage : The Effect of Price Expectations on Auto-Repair Price Quotes
abstractIn this paper we investigate whether sellers treat consumers differently on the basis of how well-informed consumers appear to be. We implement a large-scale field experiment in which callers request price quotes from automotive repair shops. We show that sellers alter their initial price quotes depending on whether consumers appear to be well-informed, uninformed, or poorly informed about market prices. We find that repair shops quote higher prices to callers who cite a higher expected price. We find that women are quoted higher prices than men when callers signal that they are uninformed about market prices. However, gender differences disappear when callers mention an expected price for the repair. Finally, we find that repair shops are more likely to offer a price concession if asked to do so by a woman than a man
Busse, Meghan R.; Israeli, Ayelet; Zettelmeyer, Florian;2013
Availability: Link Link
Citations: 4 (based on OpenCitations)
6. Estimating the Effect of Salience in Wholesale and Retail Car Markets
abstractWe investigate whether the first digit of an odometer reading is more salient to consumers than subsequent digits. We find that retail transaction prices and volumes of used vehicles drop discontinuously at 10,000-mile odometer thresholds, echoing effects found in the wholesale market by Lacetera, Pope and Sydnor (2012). Our results reveal that retail consumers devote limited attention to evaluating vehicle mileage, and that this drives effects in the wholesale market. We estimate the inattention parameter implied by the price discontinuities. In addition, our results suggest that estimating consumer-level structural parameters using data from an intermediate market can give misleading results
Busse, Meghan R.; Pope, Devin G.; Silva-Risso, Jorge; Sydnor, Justin R.; Lacetera, Nicola;2013
Availability: Link Link
7. Who is exposed to gas prices? : how gasoline prices affect automobile manufacturers and dealerships
abstractMany 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.
Busse, Meghan R.; Kittel, Christopher R.; Zettelmeyer, Florian;2012
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability:
Link 8. Who is Exposed to Gas Prices? How Gasoline Prices Affect Automobile Manufacturers and Dealerships
abstractMany 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
Busse, Meghan R.; Knittel, Christopher R.; Zettelmeyer, Florian;2012
Availability: Link Link
Citations: 4 (based on OpenCitations)
9. Projection Bias in the Car and Housing Markets
abstractProjection bias is the tendency to overpredict the degree to which one's future tastes will resemble one's current tastes. We test for evidence of projection bias in two of the largest and most important consumer markets - the car and housing markets. Using data for more than forty million vehicle transactions and four million housing purchases, we explore the impact of the weather on purchasing decisions. We find that the choice to purchase a convertible, a 4-wheel drive, or a vehicle that is black in color is highly dependent on the weather at the time of purchase in a way that is inconsistent with classical utility theory. Similarly, we find that the hedonic value that a swimming pool and that central air add to a house is higher when the house goes under contract in the summertime compared to the wintertime
Busse, Meghan R.; Pope, Devin G.; Pope, Jaren C.; Silva-Risso, Jorge;2012
Availability: Link Link
Citations: 17 (based on OpenCitations)
10. Repairing the damage : the effect of price knowledge and gender on auto repair price quotes
Busse, Meghan R.; Israeli, Ayelet; Zettelmeyer, Florian;2017
Type: Aufsatz in Zeitschrift; Article in journal;
Availability: Link
Citations: 33 (based on OpenCitations)