Making Decisions For the Future: Value of Delayed Durables and Shrinkage in Usage Duration

Kyu B. Kim, University of Southern California, USA
Raghuram Iyengar, University of Pennsylvania, USA
Durables provide a stream of benefits over their usage duration. We demonstrate that perceived usage duration is an important determinant of intertemporal preference for durables. Specifically, we show that usage duration for a durable subjectively shrinks when planned to be purchased in the future, which results in impatience for durables.
[ to cite ]:
Kyu B. Kim and Raghuram Iyengar (2013) ,"Making Decisions For the Future: Value of Delayed Durables and Shrinkage in Usage Duration", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.