Designing Fair and Sustainable Leasing

Wear-based pricing models like the Fair-Wear Pricing Model (FWPM) offer a promising, sustainable alternative to traditional leasing. However, the optimal design of such contracts from a consumer perspective remains a critical unknown, requiring a deep understanding of user preferences.

This ongoing research aims to quantify those preferences. Based on initial feedback from workshops, we are now refining our methodology to employ a choice-based conjoint analysis. The study investigates how consumers trade off key attributes like pricing structure, data privacy, and sustainability incentives, with the goal of providing actionable insights for designing leasing contracts that are both fair and commercially viable.

Working Paper.