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Buying without using - biases of German BahnCard buyers

Author

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  • Hendrik Schmale

    (Institute of Strategic Management - WWU - Westfälische Wilhelms-Universität Münster = University of Münster)

  • Thomas Ehrmann

    (Institute of Strategic Management - WWU - Westfälische Wilhelms-Universität Münster = University of Münster)

  • Alexander Dilger

    (Institute for Organisational Economics - WWU - Westfälische Wilhelms-Universität Münster = University of Münster)

Abstract

We use a large data set of German railway travellers to analyse the purchasing decision for fare-reducing BahnCards. We expect that this tariff choice is neither completely rational nor irrational, but bounded-rational in a meaningful way. Actually we predict a flat-rate bias, i.e. an under-use of their BahnCards by many customers. However, we estimate that this bias is not too large. The empirical results approve our hypotheses for the most part, especially for the more expensive BahnCard50, whereas the under-use of the cheaper BahnCard25 is so extensive that it is not worthwhile on average.

Suggested Citation

  • Hendrik Schmale & Thomas Ehrmann & Alexander Dilger, 2011. "Buying without using - biases of German BahnCard buyers," Post-Print hal-00744822, HAL.
    • Handle: RePEc:hal:journl:hal-00744822
    DOI: 10.1080/00036846.2011.613781
    Note: View the original document on HAL open archive server: https://hal.science/hal-00744822
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    References listed on IDEAS

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    Cited by:

    1. Voss, Achim, 2015. "Collective public-transport tickets and anticipated majority choice: A model of student tickets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 263-276.
    2. Piening, J. & Ehrmann, T. & Meiseberg, B., 2013. "Competing risks for train tickets – An empirical investigation of customer behavior and performance in the railway industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 1-16.

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