Willingness to pay for a message: Personalized licence plate auctions in Hong Kong

Kang Hua CAO, Chi Keung WOO, Ling ZHANG, Yuxin ZHANG

Research output: Contribution to journalArticle

Abstract

We use a large sample of winning price data hand-collected from Hong Kong’s personalized licence plate auctions held from 2006 to 2018 to estimate hedonic price regressions that document the willingness to pay (WTP) for a message. A clear and concise message of emotion or humour tends to attract a high WTP. The estimated WTP effects of vanity, positive outlook and superstition are relatively small. These findings affirm that advertising messages should be clear and concise, preferably appealing to consumers’ emotion and humour. Copyright © 2020 Informa UK Limited.
Original languageEnglish
JournalApplied Economics Letters
Early online date05 Apr 2020
DOIs
Publication statusE-pub ahead of print - 05 Apr 2020

Citation

Cao, K. H., Woo, C.-K., Zhang, L., & Zhang, Y. (2020). Willingness to pay for a message: Personalized licence plate auctions in Hong Kong. Applied Economics Letters. Advance online publication. doi: 10.1080/13504851.2020.1749757

Keywords

  • Willingness to pay
  • Advertising messages
  • Personalized licence plates
  • Ascending price auctions
  • Hong Kong

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