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On Factors of Consumer Heterogeneity in (Mis)Valuation of Future Energy Costs: Evidence for the German Automobile Market

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  • Pleshcheva, Vlada

    (HU Berlin)

  • Klapper, Daniel

    (HU Berlin)

  • Dannewald, Till

    (Wiesbaden Business School)

Abstract

In this paper, we first recover the individual valuation of expected future fuel costs at the time of a car purchase and then explore how various factors relate to the recovered consumer undervaluation of fuel savings (on average, consumers\' willingness-to-pay for a €1 reduction in fuel costs is below €0.20).

Suggested Citation

  • Pleshcheva, Vlada & Klapper, Daniel & Dannewald, Till, 2019. "On Factors of Consumer Heterogeneity in (Mis)Valuation of Future Energy Costs: Evidence for the German Automobile Market," Rationality and Competition Discussion Paper Series 140, CRC TRR 190 Rationality and Competition.
  • Handle: RePEc:rco:dpaper:140
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    References listed on IDEAS

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    More about this item

    Keywords

    energy-efficiency paradox; hedonic discrete choice model; vehicle purchase; willingness-to-pay;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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