Attribute substitution in household vehicle portfolios
Roughly three quarters of vehicles are purchased into multi-car households. We study whether households are willing to substitute attributes, such as fuel economy, across vehicles within their portfolio. We develop a novel strategy to separately identify idiosyncratic preferences for an attribute fr...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021
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| Online Access: | https://hdl.handle.net/1721.1/130156 |
| _version_ | 1811096615205732352 |
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| author | Archsmith, James Gillingham, Kenneth T. Knittel, Christopher Roland Rapson, David S. |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Archsmith, James Gillingham, Kenneth T. Knittel, Christopher Roland Rapson, David S. |
| author_sort | Archsmith, James |
| collection | MIT |
| description | Roughly three quarters of vehicles are purchased into multi-car households. We study whether households are willing to substitute attributes, such as fuel economy, across vehicles within their portfolio. We develop a novel strategy to separately identify idiosyncratic preferences for an attribute from these within-portfolio effects. Using the universe of household vehicle registration records in California over a 6-year period, we find that two-car households exhibit strong substitution across vehicles when faced with an exogenous change to fuel intensity of a kept vehicle. This effect can erode a substantial portion of the benefit from major policies, such as Cash-for-Clunkers. |
| first_indexed | 2024-09-23T16:46:31Z |
| format | Article |
| id | mit-1721.1/130156 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T16:46:31Z |
| publishDate | 2021 |
| publisher | Wiley |
| record_format | dspace |
| spelling | mit-1721.1/1301562022-10-03T08:12:46Z Attribute substitution in household vehicle portfolios Archsmith, James Gillingham, Kenneth T. Knittel, Christopher Roland Rapson, David S. Sloan School of Management Roughly three quarters of vehicles are purchased into multi-car households. We study whether households are willing to substitute attributes, such as fuel economy, across vehicles within their portfolio. We develop a novel strategy to separately identify idiosyncratic preferences for an attribute from these within-portfolio effects. Using the universe of household vehicle registration records in California over a 6-year period, we find that two-car households exhibit strong substitution across vehicles when faced with an exogenous change to fuel intensity of a kept vehicle. This effect can erode a substantial portion of the benefit from major policies, such as Cash-for-Clunkers. 2021-03-17T14:57:21Z 2021-03-17T14:57:21Z 2020-12 2020-04 2021-03-15T16:59:02Z Article http://purl.org/eprint/type/JournalArticle 0741-6261 1756-2171 https://hdl.handle.net/1721.1/130156 Archsmith, James et al. "Attribute substitution in household vehicle portfolios." RAND Journal of Economics 51, 4 (December 2020): 1162-1196 © 2020 The RAND Corporation en http://dx.doi.org/10.1111/1756-2171.12353 RAND Journal of Economics Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Wiley Prof. Knittel |
| spellingShingle | Archsmith, James Gillingham, Kenneth T. Knittel, Christopher Roland Rapson, David S. Attribute substitution in household vehicle portfolios |
| title | Attribute substitution in household vehicle portfolios |
| title_full | Attribute substitution in household vehicle portfolios |
| title_fullStr | Attribute substitution in household vehicle portfolios |
| title_full_unstemmed | Attribute substitution in household vehicle portfolios |
| title_short | Attribute substitution in household vehicle portfolios |
| title_sort | attribute substitution in household vehicle portfolios |
| url | https://hdl.handle.net/1721.1/130156 |
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