Publication Type
Working Paper
Version
publishedVersion
Publication Date
8-2003
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$1,000 (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.
Keywords
vehicle quotas, licenses, auction theory, revenue equivalence
Discipline
Asian Studies | Behavioral Economics | Econometrics
Research Areas
Applied Microeconomics
Volume
16-2003
First Page
1
Last Page
21
Publisher
SMU Economics and Statistics Working Paper Series, No. 16-2003
City or Country
Singapore
Citation
KOH, Winston T. H.; MARIANO, Roberto S.; and TSE, Yiu Kuen.
Open Versus Sealed-Bid Auctions: Testing for Revenue Equivalence under Singapore's Vehicle Quota System. (2003). 16-2003, 1-21.
Available at: https://ink.library.smu.edu.sg/soe_research/681
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.