Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/87461 
Year of Publication: 
2013
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 13-083/VII
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
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

Files in This Item:
File
Size
211.48 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.