Prof. Alessandro Gavazza of London School of Economics on mortgages, cars and market friction
Scientific Sense ®
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Car Manufacturers Are Moving to Subscription Models, Right?
Higher-end cars tend to be leased more frequently. And it turns out that when they are coming off lease, also these cars sell at a premium. So there may be a niche market for which the subscription model works and it's probably well. But if you think about it, after your house, for most consumers, the car is the second largest asset in terms of value.
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