Publication: Automobile demand, model cycle and price effects
Loading...
Identifiers
Publication date
2001-09
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Impact
Export
Abstract
The purpose of this paper is to explore the models’ life cycle in automobile demand, exploiting a newly-constructed data set. In particular, we analyze the characteristics of the cycle of models by means of non-parametric regressions of model shares on model ages (or time of permanence in the market). Then we test for the presence of price effects of the cycle, using techniques of the discrete-choice approach to demand estimation in differentiated product markets. Results show that own-price elasticities vary with age. Elasticities decrease after the introduction of the model and begin to increase when it has been marketed for three years.
Description
Keywords
model cycle, demand, discrete-choice, Differentiated products, automobiles