scholarly journals Consumer Myopia in Vehicle Purchases: Evidence from a Natural Experiment

2021 ◽  
Vol 13 (3) ◽  
pp. 207-238
Author(s):  
Kenneth T. Gillingham ◽  
Sébastien Houde ◽  
Arthur A. van Benthem
Keyword(s):  
Willingness To Pay ◽  
Fuel Economy ◽  
Natural Experiment ◽  
Purchase Price ◽  
Central Question ◽  
Consumer Valuation ◽  
Wide Range ◽  
Short Run ◽  
Fuel Costs ◽  
Economy Policy

A central question in the analysis of fuel economy policy is whether consumers are myopic with regards to future fuel costs. We provide the first evidence on the consumer valuation of fuel economy from a natural experiment that provides exogenous variation in fuel economy ratings. We examine the short-run equilibrium effects of a restatement of fuel economy ratings that affected 1.6 million vehicles. Using the implied changes in willingness to pay, we find that consumers act myopically: consumers are indifferent between $1.00 in discounted fuel costs and $0. 16–0.39 in the purchase price when discounting at 4 percent. This undervaluation persists under a wide range of assumptions. (JEL D12, L62, L71, L11)

Measuring Consumer Valuation of Limited Provider Networks

2015 ◽  
Vol 105 (5) ◽  
pp. 115-119 ◽  
Author(s):  
Keith Marzilli Ericson ◽  
Amanda Starc
Keyword(s):  
Health Insurance ◽  
Willingness To Pay ◽  
Consumer Valuation ◽  
Wide Range ◽  
Provider Networks ◽  
Narrow Networks ◽  
Additional Value ◽  
Additional Role ◽  
Brand Preferences

We measure the breadth of insurance networks in the Massachusetts health insurance exchange. Using our measures, we estimate consumer willingness-to-pay for broad and narrow networks. We find that consumers have a wide range of plans available with dramatically different networks. While consumers value broader networks, their willingness-to-pay is smaller than the brand premium, indicating an additional role for brand preferences. Consumers place additional value on star hospitals, which may affect upstream negotiations. Finally, we find significant geographic heterogeneity in the value of broad networks.

scholarly journals Are Consumers Myopic? Evidence from New and Used Car Purchases

2013 ◽  
Vol 103 (1) ◽  
pp. 220-256 ◽  
Author(s):  
Meghan R Busse ◽  
Christopher R Knittel ◽  
Florian Zettelmeyer
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Survival Rates ◽  
Gasoline Prices ◽  
Discount Rates ◽  
Demand Elasticities ◽  
Equilibrium Prices ◽  
Short Run ◽  
Used Car ◽  
Fuel Costs

We investigate whether car buyers are myopic about future fuel costs. We estimate the effect of gasoline prices on short-run equilibrium prices of cars of different fuel economies. We then compare the implied changes in willingness-to-pay to the associated changes in expected future gasoline costs for cars of different fuel economies in order to calculate implicit discount rates. Using different assumptions about annual mileage, survival rates, and demand elasticities, we calculate a range of implicit discount rates similar to the range of interest rates paid by car buyers who borrow. We interpret this as showing little evidence of consumer myopia. (JEL D12, H25, L11, L62, L71, L81)

scholarly journals Behavioral medicine challenges in the shadow of a global pandemic

2020 ◽  
Author(s):  
Alyssa T Brooks ◽  
Hannah K Allen ◽  
Louise Thornton ◽  
Tracy Trevorrow
Keyword(s):  
Environmental Factors ◽  
Health Behavior ◽  
Health Behaviors ◽  
Natural Experiment ◽  
Direct Effects ◽  
Global Pandemic ◽  
Wide Range ◽  
Future Data ◽  
Short And Long Term

Abstract Health behavior researchers should refocus and retool as it becomes increasingly clear that the challenges of the COVID-19 pandemic surpass the direct effects of COVID-19 and include unique, drastic, and ubiquitous consequences for health behavior. The circumstances of the pandemic have created a natural experiment, allowing researchers focusing on a wide range of health behaviors and populations with the opportunity to use previously collected and future data to study: (a) changes in health behavior prepandemic and postpandemic, (b) health behavior prevalence and needs amidst the pandemic, and (c) the effects of the pandemic on short- and long-term health behavior. Our field is particularly challenged as we attempt to consider biopsychosocial, political, and environmental factors that affect health and health behavior. These realities, while daunting, should call us to action to refocus and retool our research, prevention, and intervention efforts

scholarly journals Natural Experiment on Trade and Investment Liberalization and Soft Drink Consumption

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
Y Tcholakov
Keyword(s):  
Public Health ◽  
International Trade ◽  
Natural Experiment ◽  
Soft Drink ◽  
Trade Agreement ◽  
P Value ◽  
Soft Drink Consumption ◽  
Obesity And Diabetes ◽  
Wide Range ◽  
The Impact

Abstract Background Globalization is recognized to as a contributing factor to a health harming environment through a variety of mechanisms including through changes in food systems and food availability. Sugar-sweetened beverage (SSB) consumption is linked to obesity and diabetes and its regulation is a key priority for public health. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an international trade agreement between 11 countries. Methods This project uses of natural experiment methods to predict the impact of the entry into force of the CPTPP on SSB consumption. These methods allow quantitative inferences to be drawn in the situations where the exposure is not randomly assigned. Soft drink consumption data was collected from the Euromonitor database for 80 countries from all regions. This data was used to estimate the effect of agreements similar to the TPP. Results Eleven country trade agreement pairs were identified. In 5 cases out of the 11, the exposed country had a higher soft drink consumption at five years after the trade agreement. The effect of the trade agreement exposure for an average country in the sample in a trade agreement was found to be 1.10 (95% CI: 1.01-1.18; p-value: 0.03) after adjusting for GDP and the involvement of the US. In 7 of the 11 member-countries soft drink consumption is expected to increase yielding an average increase of 9.0% in those countries; the changes did not yield statistically significant differences in others. Conclusions This projected extended the use of synthetic methods to the projection of future effects of policy implementation. While it showed that there may be increasing trend of SSB consumption in certain scenarios, this could not be generalized to all cases. This illustrates the wide range of effects of international trade liberalization and highlights that national policy probably plays a strong modulating role on the impact that it has on local food environments. Key messages Globalization can lead to health harming environments and its impacts should further be studied by public health professionals and researchers. Many global policies have the potential to lead to significant health impacts but are negotiated without involving public health experts.

Shopping for Lower Sales Tax Rates

2021 ◽  
Vol 13 (3) ◽  
pp. 209-250
Author(s):  
Scott R. Baker ◽  
Stephanie Johnson ◽  
Lorenz Kueng
Keyword(s):  
Shopping Behavior ◽  
Sales Tax ◽  
Fixed Costs ◽  
Tax Rates ◽  
Inventory Problem ◽  
Sales Taxes ◽  
Long Run ◽  
Wide Range ◽  
Short Run ◽  
State And Local

Using comprehensive high-frequency state and local sales tax data, we show that shopping behavior responds strongly to changes in sales tax rates. Even though sales taxes are not observed in posted prices and have a wide range of rates and exemptions, consumers adjust in many dimensions. They stock up on storable goods before taxes rise and increase online and cross-border shopping in both the short and long run. The difference between short- and long-run spending responses has important implications for the efficacy of using sales taxes for countercyclical policy and for the design of an optimal tax framework. Interestingly, households adjust spending similarly for both taxable and tax-exempt goods. We embed an inventory problem into a continuous-time consumption-savings model and demonstrate that this behavior is optimal in the presence of shopping trip fixed costs. The model successfully matches estimated short-run and long-run tax elasticities. We provide additional evidence in favor of this new shopping complementarity mechanism. (JEL E21, E32, G51, H21, H25, H71)

scholarly journals ANALISIS BIAYA OPERASIONAL KENDARAAN (BOK) DAN WTP (WILLINGNESS TO PAY) PADA BUS AKAP JURUSAN BANJARMASIN - SAMARINDA

2018 ◽  
Vol 1 (2) ◽  
pp. 115
Author(s):  
Bagus Nugroho Putra ◽  
Utami Sylvia Lestari
Keyword(s):  
Willingness To Pay ◽  
Public Transportation ◽  
Operating Costs ◽  
Bus Drivers ◽  
The Public ◽  
Passenger Transportation ◽  
The Pacific ◽  
Wide Range ◽  
Transportation Facilities

Kota Banjarmasin adalah ibu kota provinsi dari Kalimantan Selatan dengan berbagai macam aktivitas. Salah satu angkutan umum Kota Banjarmasin adalah bus AKAP (Antar Kota Antar Provinsi) PO. Pulau Indah Jaya yang melayani transportasi penumpang dengan tujuan kota dan provinsi. Sarana transportasi memiliki tarif biaya yang ditentukan berdasarkan Biaya Operasional Kendaraan (BOK). Tujuan penelitian ini untuk mengetahui besar BOK bus AKAP dengan metode Pacific Consultant International (PCI) dan untuk mengetahui besar tarif yang diinginkan penumpang beserta tanggapan terhadap tarif yang berlaku saat ini Willingness To Pay (WTP).Penelitian ini dilakukan melalui survei wawancara untuk BOK kepada pihak PO. dan sopir bus dengan jumlah data 25 unit bus dan untuk WTP survei wawancara dengan sampel 200 penumpang bus di terminal KM 6 tempat pembelian tiket bus.Besar BOK yang dikeluarkan oleh PO. Pulau Indah Jaya Rp Rp 8.137.912.279 /tahun (bus Non AC) dengan tarif Rp 168.194 /penumpang dan Rp 8.712.239.580 /tahun (bus AC+Toilet) dengan tarif Rp 229.173 /penumpang. Besar nilai WTP bus Non AC Rp 185.000 /penumpang dan AC+Toilet Rp 245.000 /penumpang. Tanggapan terhadap tarif bus AKAP Non AC Rp 175.000 /penumpang dan AC+Toilet Rp 235.000 /penumpang adalah harga tarif bus  sesuai dengan kemampuan penumpang membayar dan mau membayar lebih dengan syarat adanya penambahan pelayanan dan fasilitas.Kata Kunci: Bus AKAP, Biaya Operasional Kendaraan (BOK), Willingness To Pay (WTP)banjarmasin city is the capital of the province of South Borneo with a wide range of activities. One of the public transportation of Banjarmasin city is the bus AKAP (Inter-City Inter Province) PO. Pulau Indah Jaya which serves passenger transportation with a city and provincial destinations. Transportation facilities have a fee that is determined based on Vehicle Operating Costs (VOC). The purpose of this study is to find out the size of the bus AKAP VOC with the Pacific Consultant International (PCI) method and to find out the number of tariffs desired by passengers along with responses to the current rates of Willingness To Pay (WTP).This research was conducted through interview surveys for VOC to PO. parties and bus drivers with data on 25 bus units and for WTP interview surveys with a sample of 200 bus passengers at the terminal KM 6 places to buy bus tickets.VOC amount issued by PO. Pulau Indah Jaya Rp. 8.137.912.279 /year (Non AC buses) with a tariff of Rp 168.194 /passenger and Rp. 8.712.239.580 /year (AC + Toilet bus) at a rate of Rp. 229.173 /passenger. The value of the Non AC WTP bus is Rp. 185.000 /passenger and the AC + Toilet Rp. 245.000 /passenger. The response to the AKAP Non AC bus fare of Rp. 175.000 /passenger and AC + Toilet Rp. 235.000 /passenger is the price of the bus fare according to the ability of the passengers to pay and pay more on the condition of additional services and facilities.Keywords: Bus AKAP, Vehicle Operating Costs (VOC), willingness to pay (WTP) 

scholarly journals Photoepilation and skin photorejuvenation: an update

2017 ◽  
Vol 9 (1) ◽  
Author(s):  
Alessandro Martella ◽  
Mauro Raichi
Keyword(s):  
Side Effects ◽  
Vascular Malformations ◽  
Purchase Price ◽  
Aesthetic Dermatology ◽  
First Choice ◽  
Wide Range ◽  
Skin Conditions ◽  
Laser Devices ◽  
Skin Coverage ◽  
Comparative Trials

The effectiveness of intense pulsed light (IPL) and laser devices is widely accepted in aesthetic dermatology for unwanted hair removal and treatment of a variety of cutaneous conditions. Overall, most comparative trials have demonstrated similar effectiveness for IPL and laser devices. Literature studies alternatively favor the IPL and laser concepts, but the incidence of severe local pain and side effects were generally lower with IPL. IPL phototherapy, already established as a sound option in photoepilation and treatment of photoaging, hyperpigmentation and other skin conditions, is also considered first choice in the phototherapy of skin vascular malformations. When treating large areas, as often required in photoepilation and many aesthetic dermatology indications, IPL technologies show advantages over laser-based devices because of their high skin coverage rate. Compared to lasers, the wide range of selectable treatment settings, though a strong advantage of IPL, may also imply some more risk of local thermal side effects, but almost only in the hands of poorly trained operators. Overall, the strongest advantages of the IPL technologies are robust technology, versatility, lower purchase price, and the negligible risk of serious adverse effects in the hands of skilled and experienced operators.

Does A Major Earthquake Change Attitudes and Well-Being Judgments? A Natural Experiment

2017 ◽  
Vol 9 (3) ◽  
pp. 364-371 ◽  
Author(s):  
Shigehiro Oishi ◽  
Florian Kohlbacher ◽  
Hyewon Choi
Keyword(s):  
Life Satisfaction ◽  
Natural Disaster ◽  
Big Five ◽  
Natural Experiment ◽  
Well Being ◽  
Demographic Variables ◽  
Big Five Personality ◽  
Regression Discontinuity Design ◽  
Short Run ◽  
Design Analyses

Does a major natural disaster change life satisfaction? This study is a rare natural experiment, in which roughly half of the respondents completed the survey before and the other half completed it after the Great East Japan Earthquake of March 11, 2011. A series of regression discontinuity design analyses showed that those who completed the survey after the earthquake reported being less satisfied with their lives than those who happened to complete the survey before the earthquake. There were no discontinuity on demographic variables and other consumer attitudes. The main findings remained virtually unchanged when we controlled for Big Five personality traits and demographic variables. Together, the current findings suggest that the experience of a major natural disaster changes their life satisfaction at least in the short run.

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