Get the free Pain at the Pump: the Effect of Gasoline Prices on New and Used Automobile Markets

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This document analyzes the impact of gasoline prices on the equilibrium prices, market shares, and sales of new and used cars differing in fuel economies. It estimates how much gasoline prices affect the prices of used cars more significantly than new cars, while also examining the myopia of consumers regarding future gasoline costs and how market structures influence the effects of environmental policies.

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