The Review of Economics and Statistics Vol. 90 No. 4 2008
Social Influence and Consumption: Evidence from the Automobile Purchases of Neighbors
Abstract
This study analyzes the automobile purchase behavior of all residents of two Finnish provinces over several years. Using a comprehensive data set with location coordinates at the individual consumer level, it finds that the purchases of neighbors, particularly in the recent past and by those who are geographically most proximate, influence a consumer's purchases of automobiles. There is little evidence that emotional biases, like envy, account for the observed social influence on consumption.
- DOI
- 10.1162/rest.90.4.735
- Volume
- 90
- Issue
- 4
- Pages
- 735-753
- Language
- en
- Sources
- openalex crossref