Question: Consider the Deacon and Sonstelie 1985 approach to valuing time

Consider the Deacon and Sonstelie (1985) approach to valuing time described in the text on p. 216. Imagine that two cars are equivalent to one another in every way (such as gas mileage) except for gas tank size, and car A’s tank has twice the gas capacity of car B’s tank. Which driver is more likely to patronize a Chevron station mandated to lower prices below those of independent stations? Explain your answer.

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  • CreatedApril 25, 2015
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