Pages

24 December 2019

Wealth Likes Company

High income families enjoy living in wealthy cities more than poor cities because they can buy more interesting things and have more choices. 
Relative to low-income households, high-income households enjoy 40 percent higher utility per dollar expenditure in wealthy cities, relative to poor cities. Similar patterns are observed across stores in different neighborhoods. Most of this variation is explained by differences in the product assortment offered, rather than the relative prices charged, by chains that operate in different markets.
Link here Via Marginal Revolution

No comments:

Post a Comment