Title

Control of Vehicle Ownership and Market Competition: Theory and Singapore's Experience with the Vehicle Quota System

Publication Type

Journal Article

Publication Date

2003

Abstract

This paper studies the impact of vehicle quota system on the market structure of Singapore's car distributorship industry. Using recently available data, we analyzed the populations and new registrations of different brands of passenger car and motorcycle. We found an increase in market concentration in the car distributorship industry, as the market shares of the top distributors have increased steadily, even though the annual growth rate of vehicle population is capped at 3% per annum. We also found that average dealership markups for passenger cars for the period August-September 2002 are similar to those reported in earlier studies. We relate these empirical findings to a theoretical model of a differentiated-good oligopoly operating under an industry sales constraint.

Discipline

Asian Studies | Economics | Transportation

Research Areas

Applied Microeconomics

Publication

Transportation Research Part A: Policy and Practice

Volume

37

Issue

9

First Page

749

Last Page

770

ISSN

0965-8564

Identifier

10.1016/s0965-8564(03)00046-6

Publisher

Elsevier

Additional URL

http://dx.doi.org/10.1016/s0965-8564(03)00046-6

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