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Do Time Poor Individuals Pay More?

  • Tim Rathjen

    ()

    (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

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    There is a rising number of concepts that try to describe the broad perception of time poverty. Though detailed time poverty analyses are available, still little is said about its impacts on the individual behaviour. Within this article, a possible new implication is analysed: The author tests whether time poor individuals compare less between prices as a result of their time deficit, therefore do not identify “bargains or rip-offs” and pay on average more for identical products and services than not time poor individuals. Using data drawn from the German Time Use Survey (GTUS) 2001/02, time use information is imputed into the German Sample Survey of Income and Expenditure (IES) 2003 to identify time poor individuals in the IES 2003. Instrumental variables estimations are arranged to account for an expected bias in ordinary least squares estimations – caused by the excluded variable (search) ability – and to catch the causal effect of time poverty on paid prices. The results do not confirm a higher price paid by time poor individuals. The findings rather suggest that time poor persons find trust in stores with a fair price performance ratio, remain loyal to them and accordingly pay a similar amount for goods and services than not time poor individuals in most cases.

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    File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/publikationen/diskussion/DP_91_-_Do_Time_Poor_Individuals_Pay_More.pdf
    File Function: First version, 2011
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    Paper provided by Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg in its series FFB-Discussionpaper with number 91.

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    Length: 29 pages
    Date of creation: Oct 2011
    Date of revision:
    Handle: RePEc:leu:wpaper:91
    Contact details of provider: Web page: http://ffb.uni-lueneburg.de/repec/leu/

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    1. Joachim Merz & Dominik Hanglberger & Rafael Rucha, 2010. "The Timing of Daily Demand for Goods and Services—Microsimulation Policy Results of an Aging Society, Increasing Labour Market Flexibility, and Extended Public Childcare in Germany," Journal of Consumer Policy, Springer, vol. 33(2), pages 119-141, June.
    2. Steven Salop & Joseph Stiglitz, 1977. "Bargains and ripoffs: a model of monopolistically competitive price dispersion," Special Studies Papers 94, Board of Governors of the Federal Reserve System (U.S.).
    3. Bardasi, Elena & Wodon, Quentin, 2006. "Measuring Time Poverty and Analyzing Its Determinants: Concepts and Application to Guinea," MPRA Paper 11082, University Library of Munich, Germany.
    4. Joachim Merz & Tim Rathjen, 2010. "Sind Selbständige zeit- und einkommensarm? Eine Mikroanalyse der Dynamik interdependenter multidimensionaler Armut mit dem Sozio-ökonomischen Panel und den deutschen Zeitbudgeterhebungen," FFB-Discussionpaper 82, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    5. repec:ebl:ecbull:v:10:y:2006:i:12:p:1-7 is not listed on IDEAS
    6. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    7. Joachim Merz & Tim Rathjen, 2009. "Time and income poverty: An interdependent multidimensional poverty approach with German time use diary data," Working Papers 126, ECINEQ, Society for the Study of Economic Inequality.
    8. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications, The World Bank, number 11985, August.
    9. Michael R. Baye & John Morgan & Patrick Scholten, 2006. "Persistent Price Dispersion in Online Markets," Chapters, in: The New Economy and Beyond, chapter 6 Edward Elgar.
    10. Michael R. Baye & John Morgan, 2001. "Information Gatekeepers on the Internet and the Competitiveness of Homogeneous Product Markets," American Economic Review, American Economic Association, vol. 91(3), pages 454-474, June.
    11. Clair Vickery, 1977. "The Time-Poor: A New Look at Poverty," Journal of Human Resources, University of Wisconsin Press, vol. 12(1), pages 27-48.
    12. Andrew Harvey & Arun Mukhopadhyay, 2007. "When Twenty-Four Hours is not Enough: Time Poverty of Working Parents," Social Indicators Research, Springer, vol. 82(1), pages 57-77, May.
    13. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
    14. Jens Bonke & Frederik Gerstoft, 2007. "Stress, time use and gender," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 4(1), pages 47-68, September.
    15. Pratt, John W & Wise, David A & Zeckhauser, Richard, 1979. "Price Differences in Almost Competitive Markets," The Quarterly Journal of Economics, MIT Press, vol. 93(2), pages 189-211, May.
    16. Mark Aguiar & Erik Hurst, 2005. "Consumption versus Expenditure," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 919-948, October.
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