HEDONIC PRICING MODELS FOR VEHICLE REGISTRATION MARKS

Abstract.  This paper attempts to link Chinese numerology to the determination of vehicle registration mark (VRM) prices in Hong Kong through the hedonic pricing analysis. The values of different patterns of the numbers and Roman alphabet letters are examined. We find that there is a very strong preference for the number '8', that visually appealing patterns add great values to a VRM and that the non-transferable VRMs are more expensive than transferable ones. We also show that their prices move in tandem with the Hang Seng Index. The findings suggest that the government can raise revenue by auctioning off intangible assets containing alphanumerical identification marks.