Roses or Lemons: Adverse Selection in the Market for Thoroughbred Yearlings

Chezum, Brian; Wimmer, Brad

doi:10.1162/rest.1997.79.3.521

Cited by 61 publications

(74 citation statements)

References 6 publications

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“…The equilibrium price p of a car is a function of characteristics observable in the market, p = p (b; v; a + t). 5 The utility ‡ow that an owner gets from a car is U (b; v; a; t; e), which can vary over individuals. It is assumed that U a 0, U t 0, and 0 U e 1, U ee < 0, and U is nonnegative and bounded.…”

Section: Modelmentioning

confidence: 99%

“…In the special case in which C depends only on the change in e, namely e t+1 e t , this amounts to assuming that marginal costs do not decrease as the change 5 We assume there are no other characteristics of the car observable in the market but not by us. 6 Although all variables except e are discrete, for brevity, we state monotonicity assumptions in terms of derivatives.…”

Section: Modelmentioning

confidence: 99%

“…Later, in Section 7.2, we discuss how to estimate the covariance matrix of generalized residuals and show that the speci…cation in equation (4) is not driving our results. Let = ( ; ; ; u ) be the set of parameters to estimate, where is the vector of brand e¤ects in equation (5), are the spline levels in equation (3), is the vector of coe¢ cients on the unobserved heterogeneity in equation (5), and u is the standard deviation of the unobserved heterogeneity. Note that this implies that the -nodes and -nodes in equation (3) are chosen prior to estimation.…”

Section: Estimationmentioning

confidence: 99%

See 2 more Smart Citations

Are lemons really hot potatoes?

Engers¹,

Hartmann²,

Stern³

2009

International Journal of Industrial Organization

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Section: Modelmentioning

confidence: 99%

Section: Modelmentioning

confidence: 99%

Section: Estimationmentioning

confidence: 99%

See 1 more Smart Citation

Are lemons really hot potatoes?

Engers¹,

Hartmann²,

Stern³

2009

International Journal of Industrial Organization

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“…6 Other applications of this framework are found in the markets for used cars (Genesove, 1993) and for thoroughbred yearlings (Chezum and Wimmer, 1997) among others.…”

Section: Adverse Selection In Slave Marketsmentioning

confidence: 99%

Asymmetric Information and Adverse Selection in Mauritian Slave Auctions

2008

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Information asymmetry is a necessary prerequisite for testing adverse selection. This paper applies this sequence of tests to Mauritian slave auctions. The theory of dynamic auctions with private and common values suggests that when an informed participant is known to be active, uninformed bidders will be more aggressive and the selling price will be higher. We conjecture that observable family links between buyer and seller entailed superior information and find a strong price premium when a related buyer purchased a slave, indicative of information asymmetry. We then test for adverse selection using sale motivation. Our results indicate large discounts on voluntary as compared to involuntary sales. Consistent with adverse selection, the market anticipated that predominantly low-productivity slaves would be brought to the market in voluntary sales. JEL Classification: D 82, N 37

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“…One of the major objectives of large animal breeders is to be able to choose the sex of the offspring. In horses, the male sex is preferred in Thoroughbreds racing horses (Chezum and Wimmer, 1997) and the female sex in Polo horses (Panarace et al, 2013;Hererra et al, 2014). A number of invasive and non-invasive techniques of embryo sexing have been developed and tested so far.…”

Section: Introductionmentioning

confidence: 99%

Equine Embryo Sexing - a Case Study of its Applicability in Romania

Crişan¹,

Morar²,

Cenariu³

et al. 2015

BUASVMCN-VM

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The interest of sex determination in embryos has an economical and research implication. This method is directly related to the embryo transfer method, which nowadays is considered to be an industry, in both equine and bovine. The purpose of this work was to evaluate the applicability of equine embryo sexing using the polymerase chain reaction (PCR) and to decide if this method is affordable for Romania and yields good results. Five equine embryos have been obtained by natural breeding using transcervical uterine lavage with Ringer Lactate on 6.5 or 7 days. The DNA extraction was performed by using proteinase K and the DNA was quantified by spectrophotometry. Three sets of primers have been used. The double nested PCR was performed, followed by electrophoresis of the amplified samples. From the five embryos obtained, three samples presented a single 445 bp DNA band and no SRY band and they were considered to be females. In two cases, the 445 bp was accompanied by the SRY-1 217 bp and SRY-2 121 bp band, thus being considered to come from male embryos. The embryo biopsy was done in 2 embryos and one biopsied embryo was transferred to a recipient mare. The transfer of the biopsied embryo did not succeed. PCR is suitable for sexing preimplantation equine embryos, but still in order to perform this type of activity at a commercial level, the infrastructure and the development of Equine Reproduction centres it's mandatory.

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Roses or Lemons: Adverse Selection in the Market for Thoroughbred Yearlings

Cited by 61 publications

References 6 publications

Are lemons really hot potatoes?

Are lemons really hot potatoes?

Asymmetric Information and Adverse Selection in Mauritian Slave Auctions

Equine Embryo Sexing - a Case Study of its Applicability in Romania

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