Publication Type
Journal Article
Version
acceptedVersion
Publication Date
10-1993
Abstract
This paper studies the hypothesis that auctions with resale markets result in higher prices. The vehicle quota system introduced in Singapore in May 1990 provides the setting. The Certificates of Entitlement (COEs) necessary to purchase new cars were initially transferable for all quota categories. After October 1991, COEs for four major categories became non-transferable. Our results indicate that while the conversion to non-transferability eliminated speculation, it has also intensified competition among car distributors. Auctions for non-transferable COEs in fact led to higher COE prices in three of the four categories.
Keywords
Auctions, Bidders, Resale value, Vehicles, Singapore
Discipline
Asian Studies | Economics | Finance and Financial Management
Research Areas
Quantitative Finance; Applied Microeconomics
Publication
Asia Pacific Journal of Management
Volume
10
Issue
2
First Page
177
Last Page
194
ISSN
0217-4561
Identifier
10.1007/BF01734277
Publisher
Springer Verlag
Citation
LEE, David K. C. and KOH, Winston T. H..
Auctions for Transferable Objects: Theory and Evidence from the Vehicle Quota System in Singapore. (1993). Asia Pacific Journal of Management. 10, (2), 177-194.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/3374
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/BF01734277