Myopic preferences or subsistence income? Why do rickshaw cyclists rent the cycle?

dc.contributor.author	Hatlebakk, Magnus
dc.date.accessioned	2018-01-04T08:18:46Z
dc.date.available	2018-01-04T08:18:46Z
dc.date.issued	2012-01-27
dc.identifier	oai:www.cmi.no:4368
dc.identifier.citation	Bergen: Chr. Michelsen Institute (CMI Working Paper WP 2012:1) 15 p.
dc.identifier.isbn	978-82-8062-426-0
dc.identifier.issn	0804-3639
dc.identifier.uri	http://hdl.handle.net/11250/2474911
dc.description.abstract	One year rent is sufficient to buy a rickshaw in the plains of Nepal, while a rickshaw will last many years, so purchase appears very profitable. Still most cyclists rent the rickshaw. Based on choices made by rickshaw pullers between hypothetical financing schemes for rickshaws we investigate whether the explanation is a high time-preference rate or a high elasticity of the marginal utility of consumption, which in turn can be explained by preferences that are formed by consumption near a subsistence level. We find that subsistence constraints are more important than myopic preferences.
dc.language.iso	eng
dc.publisher	Chr. Michelsen Institute
dc.relation	CMI Working Paper
dc.relation	WP 2012:1
dc.relation.ispartof	CMI Working Paper
dc.relation.ispartofseries	CMI Working Paper WP 2012:1
dc.relation.uri	https://www.cmi.no/publications/4368-myopic-preferences-or-subsistence-income
dc.subject	Investment Behavior
dc.subject	Poverty
dc.subject	Time-Preferences
dc.subject	Nepal
dc.title	Myopic preferences or subsistence income? Why do rickshaw cyclists rent the cycle?
dc.type	Working paper