Durables and lemons: private information and the market for cars
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. Private information induces a transaction cost and distorts the market reducing the value of a car as a savings instrument. We estimate the mo...
| Main Authors: | , , , , |
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| Format: | Working paper |
| Published: |
University of Oxford
2019
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