Fashion, Styling, and the Within-Season Decline in Automobile Prices
Between 1954 and 1989 the seasonal variation in retail new car prices declined, while the annual percentage decline in used car prices lessened. To explain these long-term changes, this article suggests that a rise in the cost of a major model change has reduced the frequency of major model changes, changed the characteristics of new models, and resulted in smaller within-season price declines. New cars of adjacent model years have become closer substitutes as the importance of the annual model change has lessened. The American automobile has slowly become less of a fashion product because it has become increasingly costly to supply frequent styling changes. In contrast, the within-season price decline in women's apparel has increased over time as fashion has become more important. Reasons for the different price patterns are investigated. Copyright 1995 by the University of Chicago.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pashigian, B Peter, 1988. "Demand Uncertainty and Sales: A Study of Fashion and Markdown Pricin g," American Economic Review, American Economic Association, vol. 78(5), pages 936-953, December.
- Allen F. Jung, 1961. "Indexes of Retail Prices of New Cars-Consumer Price Index," The Journal of Business, University of Chicago Press, vol. 34, pages 1-490.
- Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, Enero.
- repec:ucp:bknber:9780226304557 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:v:38:y:1995:i:2:p:281-309. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.