Consumer Discount Rates and the Decision to Repair or Replace a Durable Product: A Sustainable Consumption Issue

摘要: America has often been labeled a "throw-away" society due to the large amount of products that could have reused but are discarded from typical household on daily basis. This paper attempts answer question why, when given two consumers with same income level and socio-economic background, does one consumer choose replace an older, malfunctioning product while other chooses repaired for further reuse. To help address this enhanced replacement model is presented empirically tested. The around some time, helping firms make capital budgeting decisions. analysis can be extrapolated macro where economy higher societal discount rate might more strongly characterized as "throw-away society" than similar lower consumption rates.