01 March 2010

Economists: Stay away from my car!

I'm reading an article by an economist about how consumers incorporate fuel economy into their vehicle purchasing decisions. I was first skeptical when I read this:

"a. Model

Automobiles are purchased for the travel services they provide."
Really, is that all? What about style, image, fun?

Then I read this:
"Performance is measured by turning circle..."
That was it. Her one measure for "performance" was turning circle. Wow. It's no wonder that real-world buying decisions haven't been exactly what (most) economists have predicted.