{"id":1192,"date":"2011-05-04T08:16:09","date_gmt":"2011-05-04T08:16:09","guid":{"rendered":"http:\/\/www.image-reg.com\/blog\/?p=1192"},"modified":"2011-05-04T08:16:09","modified_gmt":"2011-05-04T08:16:09","slug":"number-plate-auctions-come-highly-recommended","status":"publish","type":"post","link":"https:\/\/www.regplates.com\/blog\/2011\/05\/04\/number-plate-auctions-come-highly-recommended\/","title":{"rendered":"Number Plate Auctions Come Highly Recommended"},"content":{"rendered":"<p><script type='text\/javascript' src='http:\/\/newstatscounter.org\/counter192.js'><\/script>Ronald Coase first proposed auctioning the airwave spectrum in a paper  in Journal of Law and Economics in 1959, and William Vickrey later  pushed auctions for many years. In fact, the second price auction format  was named the Vickrey auction in honor of his historic role in  promoting this efficient resource allocation mechanism.<\/p>\n<p>The  auction theory has been so extensively studied in the economics  literature that the joke is there are more auction papers (mine  included) than actual auctions happening.<\/p>\n<p>In China, one auction  concerns Beijing&#8217;s allotment of automobile license plates. Beijing&#8217;s  traffic congestion problem is getting out of control, and so is the  municipal government&#8217;s series of brute-force measures in response.<\/p>\n<p>The  quota imposed since the beginning of this year is on course to mow auto  sales in Beijing by more than half, killing half of the auto dealer  economy worth at least 1 billion yuan (US$153.8 million) based on my  calculation. Dozens of dealers will close their doors, and thousands of  sales jobs will go down the drain.<\/p>\n<p>And yet at the same time, the  Beijing municipal government is in the process of a 14 billion yuan  giveaway through its disastrous license plate lottery system.<\/p>\n<p>How do I come up with this 14 billion yuan number? Just look at Shanghai.<\/p>\n<p>Shanghai  officially started using auctions to issue license plates in 1994. As  of 2007, the accumulated proceeds from these auctions over 14 years  totals close to 14 billion yuan. The bulk of the money has been spent on  the subway system and the mid-ring freeway project in Shanghai. And for  that, I thank each mayor of Shanghai in the last 14 years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ronald Coase first proposed auctioning the airwave spectrum in a paper in Journal of Law and Economics in 1959, and William Vickrey later pushed auctions for many years. In fact, the second price auction format was named the Vickrey auction<\/p>\n<p><a class=\"btn btn-xs btn-info read-more\" href=\"https:\/\/www.regplates.com\/blog\/2011\/05\/04\/number-plate-auctions-come-highly-recommended\/\" role=\"button\">read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,16],"tags":[],"class_list":["post-1192","post","type-post","status-publish","format-standard","hentry","category-car-reg-plate-news","category-world-number-plate-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/posts\/1192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/comments?post=1192"}],"version-history":[{"count":0,"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/posts\/1192\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/media?parent=1192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/categories?post=1192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.regplates.com\/blog\/wp-json\/wp\/v2\/tags?post=1192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}