Title

Open Versus Sealed Bid Auctions: Testing for Revenue Equivalence under Singapore's Vehicle Quota System

Publication Type

Journal Article

Publication Date

2007

Abstract

Using data from the auction of vehicle quota licenses in Singapore, we study if revenue equivalence holds when the auction format was switched from a sealed-bid format (May 1990 to June 2001) to an open bidding format since July 2001. Our econometric analysis indicates the change in auction format led to a change in bidding behavior. On average, the quota license premium under the open bidding format is about US$1000 (about 7.5% of the Category E license price in June 2001) lower, compared to the forecast level that would have prevailed if there had been no change in the auction format.

Discipline

Econometrics

Research Areas

Econometrics

Publication

Applied Economics

Volume

39

Issue

1

First Page

125

Last Page

134

ISSN

0003-6846

Identifier

10.1080/00036840500427916

Publisher

Taylor and Francis

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1080/00036840500427916

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