Adverse selection in the used‐car market: evidence from purchase and repair patterns in the Consumer Expenditure Survey
利用消费者支出调查和消费者报告数据，将汽车视为零件组合，分析二手车市场中因变速箱、发动机和空调状况导致的逆向选择，以及因车身和空调状况导致的分类效应，量化了逆向选择对交易量和质量的显著影响。
We analyze adverse selection in the used‐car market using a new approach that considers a car as an assemblage of parts, some with symmetric information and others with asymmetric information. Using data from the Consumer Expenditure Survey and Consumer Reports, we examine turnover and repair patterns. We find evidence of adverse selection due to the conditions of the transmission, engine, and, during colder months, air‐conditioning; and sorting due to the conditions of the vehicle body and, during warmer months, air‐conditioning. Our quantification exercises indicate that adverse selection may have a meaningful effect on trade volume and quality in the secondhand market.