The Intergenerational Transmission of Automobile Brand Preferences |
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| Authors: | Soren T. Anderson Ryan Kellogg Ashley Langer James M. Sallee |
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| Affiliation: | 1. Department of Economics, Michigan State University, East Lansing, Michigan, U.S.A.;2. Department of Economics, University of Michigan, Ann Arbor, Michigan, U.S.A.;3. Department of Economics, University of Arizona, Tucson, Arizona, U.S.A.;4. Department of Agricultural and Resource Economics, University of California at Berkeley, Berkeley, California, U.S.A. |
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| Abstract: | ![]()
We document a strong correlation in the brand of automobile chosen by parents and their adult children, using data from the Panel Study of Income Dynamics. This correlation could represent transmission of brand preferences across generations, or it could result from correlation in family characteristics that determine brand choice. We present a variety of empirical specifications that lend support to the former interpretation and to a mechanism that relies at least in part on state dependence. We then discuss implications of intergenerational brand preference transmission for automakers’ product‐line strategies and for the strategic pricing of vehicles to different age groups. |
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