Adverse Selection in the Wholesale Used Car Market Export

@article{citeulike:160081, abstract = {This paper presents an empirical investigation of adverse selection in the wholesale used car market. New car dealers (who sell both new and used cars) differ from used car dealers (who sell only used cars) in the propensity to sell trade-ins on the wholesale market. Models of adverse selection suggest that the dealer type that sells a higher proportion of its trade-ins on the wholesale market will sell, on average, cars of higher quality and receive in return a higher price. A survey of dealers' wholesale behavior and prices collected at a wholesale auction are used to test this prediction. I find weak evidence for adverse selection.}, author = {Genesove, David}, citeulike-article-id = {160081}, citeulike-linkout-0 = {http://www.jstor.org/stable/2138742}, journal = {The Journal of Political Economy}, keywords = {adverse, cars, economics, market}, number = {4}, pages = {644--665}, posted-at = {2006-11-05 17:51:48}, priority = {2}, title = {Adverse Selection in the Wholesale Used Car Market}, url = {http://www.jstor.org/stable/2138742}, volume = {101}, year = {1993} }

TY - JOUR ID - citeulike:160081 L3 - citeulike-article-id:160081 N2 - This paper presents an empirical investigation of adverse selection in the wholesale used car market. New car dealers (who sell both new and used cars) differ from used car dealers (who sell only used cars) in the propensity to sell trade-ins on the wholesale market. Models of adverse selection suggest that the dealer type that sells a higher proportion of its trade-ins on the wholesale market will sell, on average, cars of higher quality and receive in return a higher price. A survey of dealers' wholesale behavior and prices collected at a wholesale auction are used to test this prediction. I find weak evidence for adverse selection. IS - 4 JF - The Journal of Political Economy EP - 665 TI - Adverse Selection in the Wholesale Used Car Market VL - 101 SP - 644 KW - adverse KW - cars KW - economics KW - market AU - Genesove, David PY - 1993/// UR - http://www.jstor.org/stable/2138742 ER -