Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors / Mark Grinblatt, Matti Keloharju, Seppo Ikaheimo.

Format:

Book

Author/Creator:

Grinblatt, Mark.

Contributor:

National Bureau of Economic Research.

Keloharju, Matti.

Ikaheimo, Seppo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10226.

NBER working paper series no. w10226

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Interpersonal Effects in Consumption

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. It finds that a consumer's purchases are strongly influenced by the purchases of his neighbors, particularly purchases in the recent past and by neighbors who are geographically most proximate. There is little evidence that emotional biases, like envy or an urge to conform, lie behind the interpersonal influence in automobile consumption. The most reasonable alternative explanation for these findings is some form of information sharing among neighbors.

Notes:

Print version record

January 2004.