This paper presents a dynamic model for light motor vehicles. Consumers solve an optimal stopping problem in deciding if they want a new automobile and when in the model year to purchase it. This dynamic approach allows for determining how the mix of consumers evolves over the model year and for...

Consumers with higher income often spend more on luxury goods. As a result, lower-income consumers who seek to increase their perceived income status may be motivated to purchase conspicuous luxury goods. They may also desire to emulate the visible consumption displayed by their wealthier peers....

This paper presents a dynamic model for light motor vehicles. Consumers solve an optimal stopping problem in deciding if they want a new automobile and when in the model year to purchase it. This dynamic approach allows for determining how the mix of consumers evolves over the model year and for...

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...

We examine the indirect impact of price deals, which occurs through the formation of expected future prices, on households' purchase decisions. Two competing learning processes of households' formation of expected future deals that lead to opposite predictions are proposed. Under a...

Expenditure visibility—the extent to which a household's spending on a consumption category is noticeable to others—is measured in three new surveys, with ~3,000 telephone and online respondents. Visibility shows little change across time (ten years) and survey methods. Four different...

We estimate the effect of information on consumers' willingness to pay for branded goods in physically homogeneous consumer packaged goods categories. In a case study of headache remedies, we find that college education, working in a healthcare occupation, and other proxies for product knowledge...

Advertising plays a significant role in the economic life of almost every market economy. In particular, the informative role that advertising plays in the modern marketing in motivating potential consumers to increase consumption at the expense of savings is hardly debatable. Thus, the purpose...

We study whether households can distinguish persistent from transitory income shocks, and the implications for consumption-saving behavior. We construct a novel consumption-saving model where the household must infer the persistent component of its income process from actual income realizations...

In response to the economic crisis created by the COVID-19 pandemic, many governments provided financial assistance to households. Using representative consumer surveys conducted during the pandemic in 2020, we examine the effects of this fiscal policy instrument on households in two emerging...