USED CAR PRICE ANALYSIS IN THAILAND: EMPIRICAL EVIDENCE ON QUALITY SIGNALING
Keywords:
Used Car Market, Hedonic Pricing Model, Used Car Pricing, Information Asymmetry, Quality SignalingAbstract
This study examines the characteristics that influence used car prices in Thailand and analyzes the role of quality signaling in price determination using a hedonic pricing model. The analysis is based on cross sectional data collected from an online platform, comprising 450 observations. The empirical results show that mileage and fuel consumption have a statistically significant negative effect on used car prices, while performance related characteristics, such as horsepower and engine displacement, are positively associated with price. In addition, quality signals that enhance buyers’ perceptions of vehicle quality are found to have a positive and significant impact on price. Used cars sold through authorized dealers with quality certification, as well as those accompanied by after sales warranties, command noticeably higher prices. With respect to other vehicle attributes, Coupé models are priced higher than Sedans, and vehicles equipped with sunroofs are valued more highly than those without. Overall, the findings indicate that used car pricing in Thailand reflects not only physical attributes and performance characteristics but also observable quality signals that help mitigate information asymmetry in the market.
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