Search the Community

I think the more commonly accepted problem of COE if that the price swings too much until it is like lottery as others would say. So what is the solution. I think instead of a bidding system a pricing system by the government is better but than you have to think about how to control the quantity of COE. I don't know much about COEs so I am putting this suggestion up for criticism. 1) create a reserve COE pool of 1% which is 10k out of a million vehicles. 2) Instead of twice a month bidding, COE bidding or sale window (a better name since no more bidding) is increased to twice a week because we need a faster feedback response to set the price faster. The number of COE per window is divided accordingly 3) The two BIG question is how do you set the price and what to do if more people want to buy in each window than what is available. 4) price set is based on demand derived from each window. It is similar to how to price every goods. If we sell out, we increase the price depending on how much we sell out. If we don't sell out, we DON'T reduce the price to ridiculous level just to sell out like the current policy. The unsold COE goes into the reserve pool and the price drops based on how much unsold we have. 5) If we sell out, we can take a certain portion of the reserve COE to meet the sudden demand. If the demand is too big, it is by drawing lots to decide allocation. That is why we need to have more frequent COE bidding as you cannot be sure you will be successful. To solve this problem, we can also create a new Cat COE where it is by bidding. If you are time sensitive, you can go there. We also want to adjust the price faster so we don't have a sell out situations often and run out of reserve COEs. There are probably more details to iron out but I am wondering if there is anything seriously wrong with this. It sort of duplicates what normal people do when selling stuff. They keep inventories, and they price their goods based on demand. The only different thing is allocation is not allocated by first come first serve, but by drawing lots when sold out. If you looked at the current system, the MAIN problem of the system is that Price alone is handling ALL the fluctuations in the real world like demand. And instead of having the supply dampening those fluctuations, the supply itself is making worse as the supply it also wildly fluctuating based on things that happened 10 years ago. My system is trying to fix the supply side problem. It also removes the "bidding" problems like rigging, etc.