Information Reliability and Market Outcomes
研究1986年美国联邦法规强制要求记录里程表读数后，各州执法力度差异如何影响二手车市场的信息披露、定价和流动性，发现加强执法提高了里程表可信度，使要价对里程的敏感度上升32.6%，信息披露增加23.4%，要价提高9.7%，交易速度加快13.4%。
We study the used car market to understand how public enforcement that intends to increase information reliability affects disclosure, pricing, and liquidity. In 1986, federal rules mandated the creation of odometer records, and states enforced the law in a staggered fashion. We find that used car asking-price sensitivity to mileage increases by 32.6%, and mileage disclosure in classified ads increases by 23.4%. The findings suggest that strengthened law enforcement increases odometer credibility and enhances market participants’ use of that information. We also show significant improvement in market outcomes: a 9.7% increase in asking price and a 13.4% increase in transaction speed, as reflected in the reduction in repeated ads. The price effect arises irrespective of whether ads contain mileage disclosure, whereas the liquidity effect arises mainly through disclosure. Our study shows public enforcement can benefit the market by improving information credibility. This paper was accepted by Suraj Srinivasan, accounting. Funding: The authors are grateful for financial support from the Olin Business School, Washington University in St. Louis. Supplemental Material: The data and online appendix are available at https://doi.org/10.1287/mnsc.2021.03758