Busse, Meghan R.; Knittel, Christopher R.; Zettelmeyer, … - In: American Economic Review 103 (2013) 1, pp. 220-56
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...