We specify an equilibrium model of car ownership with private information where individuals sell and purchase new and second-hand cars over their life-cycle. This private information introduces a transaction cost, distorts the market and reduces the value of a car as a savings instrument. We estimate the model using Danish linked registry data on car ownership, income and wealth. The transaction cost, which we term the lemons penalty, is estimated to be 18% of the price in the first year of ownership, declining with the length of ownership. It leads to large reductions in the turnover of cars and in the probability of downgrading in the event of an adverse income shock. The size of the lemons penalty declines when uncertainty in the economy...
Automobile depreciation rates and dealer markups in the United States and Britain during the 1950s a...
This article studies equilibrium dynamics in consumer durable goods markets after aggregate credit s...
We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An i...
We specify an equilibrium model of car ownership with private information where individuals sell and...
The model of equilibrium price dispersion examines the demand for cars through the optics of the dem...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The lemons model assumes that owners of used cars have an informational advantage over potential buy...
Markets in which secondhand goods are traded perform a variety of important economic functions. For ...
The study of the marginal scenario of the theorem of lemons under the total failure of the market of...
'The lemons model assumes that owners of used cars have an informational advantage over potential bu...
Since Akerlofs (1970) foundational work on lemons markets, economists have been investigating how di...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The automotive market is in the top three markets with the least trust from consumers. In particular...
We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An i...
The used car market is full of mistrust and uncertainties. Providing a vehicle history with trusted ...
Automobile depreciation rates and dealer markups in the United States and Britain during the 1950s a...
This article studies equilibrium dynamics in consumer durable goods markets after aggregate credit s...
We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An i...
We specify an equilibrium model of car ownership with private information where individuals sell and...
The model of equilibrium price dispersion examines the demand for cars through the optics of the dem...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The lemons model assumes that owners of used cars have an informational advantage over potential buy...
Markets in which secondhand goods are traded perform a variety of important economic functions. For ...
The study of the marginal scenario of the theorem of lemons under the total failure of the market of...
'The lemons model assumes that owners of used cars have an informational advantage over potential bu...
Since Akerlofs (1970) foundational work on lemons markets, economists have been investigating how di...
The lemons model assumes that owners of used cars have an information advantage over potential buyer...
The automotive market is in the top three markets with the least trust from consumers. In particular...
We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An i...
The used car market is full of mistrust and uncertainties. Providing a vehicle history with trusted ...
Automobile depreciation rates and dealer markups in the United States and Britain during the 1950s a...
This article studies equilibrium dynamics in consumer durable goods markets after aggregate credit s...
We quantitatively investigate the allocative and welfare effects of secondary markets for cars. An i...