Aron-Dine, Aviva; Einav, Liran; Finkelstein, Amy; … - Stanford Institute for Economic Policy Research … - 2012
We investigate whether individuals exhibit forward looking behavior in their response to the non-linear pricing common … elasticity of -0.4 to -0.6. To try to quantify the extent of forward looking behavior, we develop a stylized dynamic model of … Experiment. Our calibration suggests that the elasticity estimate is substantially smaller than the one implied by fully forward-looking …