Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87461
Authors: 
Kobus, Martijn B.W.
van Ommeren, Jos N.
Koster, Hans R.A.
Rietveld, Piet
Year of Publication: 
2013
Series/Report no.: 
Tinbergen Institute Discussion Paper 13-083/VII
Abstract: 
For certain goods, higher levels of congestion imply higher levels of expected future entry costs. This provides current users of the good with an incentive to hoard, that is, to lengthen their duration of good use, in order avoid entry costs later on. We test for hoarding of university computers by students. Endogeneity of congestion is acknowledged by using an instrumental variable approach. Our results indicate that congestion has a strong effect on hoarding behaviour. More specifically, it is shown that the congestion elasticity of computer duration is about 0.57.
Subjects: 
congestible goods
hoarding
computer use
JEL: 
D00
Document Type: 
Working Paper

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