What affects customer success when bargaining for a new car? Some empirical evidence

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2012
Volume: 41
Issue: 1
Pages: 26-30

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Data about 233 new car models were collected, and a measure of customer success in bargaining for a new car (alpha) was created by computing the ratio between the discount received on the manufacturer's suggested retail price (MSRP) and the negotiable range (MSRP−dealer's car cost). One hypothesis was that customers who purchase more expensive cars succeed less in bargaining because of their higher time value. A second hypothesis was that a positive correlation between the negotiable range and alpha should exist, because of either customer incentives to bargain or dealer's bargaining strategy. Both hypotheses were supported by the data.

Technical Details

RePEc Handle
repec:eee:soceco:v:41:y:2012:i:1:p:26-30
Journal Field
Experimental
Author Count
1
Added to Database
2026-01-24