IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v241y2015i1p188-201.html
   My bibliography  Save this article

House selection via the internet by considering homebuyers’ risk attitudes with S-shaped utility functions

Author

Listed:
  • Ho, Hui-Ping
  • Chang, Ching-Ter
  • Ku, Cheng-Yuan

Abstract

The widespread use of the Internet has significantly changed the behavior of homebuyers. Using online real estate agents, homebuyers can rapidly find some modern houses that meet their needs; however, most current online housing systems provide limit features. In particular, existing systems fail to consider homebuyers’ housing goals and risk attitudes. To increase effectiveness, online real estate agents should provide an efficient matching mechanism, personalized service and house ranking with the aim of increasing both buyers’ satisfaction and deal rate. An efficient online real estate agent should provide an easy way for homebuyers to find (rank) a suitable house (alternatives) with consideration of their different housing philosophies and risk attitudes. In order to comprehend these ambiguous housing goals and risk attitudes, it is also indispensable to determine a satisfaction level for each fuzzy goal and constraint.

Suggested Citation

  • Ho, Hui-Ping & Chang, Ching-Ter & Ku, Cheng-Yuan, 2015. "House selection via the internet by considering homebuyers’ risk attitudes with S-shaped utility functions," European Journal of Operational Research, Elsevier, vol. 241(1), pages 188-201.
    • Handle: RePEc:eee:ejores:v:241:y:2015:i:1:p:188-201
    DOI: 10.1016/j.ejor.2014.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714006444
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.08.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. E. Bellman & L. A. Zadeh, 1970. "Decision-Making in a Fuzzy Environment," Management Science, INFORMS, vol. 17(4), pages 141-164, December.
    2. Ramanathan, R. & Ganesh, L. S., 1995. "Energy resource allocation incorporating qualitative and quantitative criteria: An integrated model using goal programming and AHP," Socio-Economic Planning Sciences, Elsevier, vol. 29(3), pages 197-218, September.
    3. Kummerow, Max & Chan Lun, Joëlle, 0. "Information and communication technology in the real estate industry: productivity, industry structure and market efficiency," Telecommunications Policy, Elsevier, vol. 29(2-3), pages 173-190, March.
    4. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    5. Ernest H. Forman & Saul I. Gass, 2001. "The Analytic Hierarchy Process---An Exposition," Operations Research, INFORMS, vol. 49(4), pages 469-486, August.
    6. Zumpano, Leonard V. & Johnson, Ken H. & Anderson, Randy I., 2003. "Internet use and real estate brokerage market intermediation," Journal of Housing Economics, Elsevier, vol. 12(2), pages 134-150, June.
    7. Michaelides, Marios, 2011. "The effect of local ties, wages, and housing costs on migration decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(2), pages 132-140, April.
    8. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    9. Badri, Masood A., 2001. "A combined AHP-GP model for quality control systems," International Journal of Production Economics, Elsevier, vol. 72(1), pages 27-40, June.
    10. Schniederjans, Marc J. & Garvin, Tim, 1997. "Using the analytic hierarchy process and multi-objective programming for the selection of cost drivers in activity-based costing," European Journal of Operational Research, Elsevier, vol. 100(1), pages 72-80, July.
    11. Tamiz, Mehrdad & Jones, Dylan & Romero, Carlos, 1998. "Goal programming for decision making: An overview of the current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 111(3), pages 569-581, December.
    12. Ford, James Scott & Rutherford, Ronald C. & Yavas, Abdullah, 2005. "The effects of the internet on marketing residential real estate," Journal of Housing Economics, Elsevier, vol. 14(2), pages 92-108, June.
    13. Ben C. Arimah, 1992. "An Empirical Analysis of the Demand for Housing Attributes in a Third World City," Land Economics, University of Wisconsin Press, vol. 68(4), pages 366-379.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chai, Naijie & Zhou, Wenliang & Hu, Xinlei, 2022. "Safety evaluation of urban rail transit operation considering uncertainty and risk preference: A case study in China," Transport Policy, Elsevier, vol. 125(C), pages 267-288.
    2. Haghbayan Sara & Malek Mohammad Reza & Tashayo Behnam, 2020. "Visual Description of the Indoor Space of Real Estate in Crowd-Sourcing Environments," Real Estate Management and Valuation, Sciendo, vol. 28(3), pages 91-103, September.
    3. Zheng, Xiao-Xue & Chang, Ching-Ter, 2021. "Topology design of remote patient monitoring system concerning qualitative and quantitative issues," Omega, Elsevier, vol. 98(C).
    4. Jianwei Gao & Huihui Liu, 2017. "Generalized Ordered Weighted Reference Dependent Utility Aggregation Operators and Their Applications to Group Decision-Making," Group Decision and Negotiation, Springer, vol. 26(6), pages 1173-1207, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bilbao-Terol, Amelia & Arenas-Parra, Mar & Cañal-Fernández, Verónica, 2016. "A model based on Copula Theory for sustainable and social responsible investments," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 55-76.
    2. Alessandro Golkar & Edward F. Crawley, 2014. "A Framework for Space Systems Architecture under Stakeholder Objectives Ambiguity," Systems Engineering, John Wiley & Sons, vol. 17(4), pages 479-502, December.
    3. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    4. Hocine, Amine & Kouaissah, Noureddine & Bettahar, Samir & Benbouziane, Mohamed, 2018. "Optimizing renewable energy portfolios under uncertainty: A multi-segment fuzzy goal programming approach," Renewable Energy, Elsevier, vol. 129(PA), pages 540-552.
    5. Mark D. Packard & Brent B. Clark & Peter G. Klein, 2017. "Uncertainty Types and Transitions in the Entrepreneurial Process," Organization Science, INFORMS, vol. 28(5), pages 840-856, October.
    6. Zhu, Bin & Xu, Zeshui, 2014. "Analytic hierarchy process-hesitant group decision making," European Journal of Operational Research, Elsevier, vol. 239(3), pages 794-801.
    7. Hocine, Amine & Kouaissah, Noureddine, 2020. "XOR analytic hierarchy process and its application in the renewable energy sector," Omega, Elsevier, vol. 97(C).
    8. Zan Yang & Shuping Wu, 2019. "Land acquisition outcome, developer risk attitude and land development timing," The Journal of Real Estate Finance and Economics, Springer, vol. 59(2), pages 233-271, August.
    9. Chang, Ching-Ter, 2011. "Multi-choice goal programming with utility functions," European Journal of Operational Research, Elsevier, vol. 215(2), pages 439-445, December.
    10. Shipley, Margaret F. & de Korvin, Andre & Omer, Khursheed, 2001. "A fuzzy logic-based decision model to satisfy goals for successful product/service introduction," European Journal of Operational Research, Elsevier, vol. 135(1), pages 209-219, November.
    11. Johanna Vásquez & Sergio Botero, 2020. "Hybrid Methodology to Improve Health Status Utility Values Derivation Using EQ-5D-5L and Advanced Multi-Criteria Techniques," IJERPH, MDPI, vol. 17(4), pages 1-18, February.
    12. Keon Chul Park & Dong-Hee Shin, 2017. "Security assessment framework for IoT service," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 64(1), pages 193-209, January.
    13. Larceneux, Fabrice & Lefebvre, Thomas & Simon, Arnaud, 2015. "What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model," Journal of Housing Economics, Elsevier, vol. 29(C), pages 72-82.
    14. Kengpol, Athakorn & Meethom, Warapoj & Tuominen, Markku, 2012. "The development of a decision support system in multimodal transportation routing within Greater Mekong sub-region countries," International Journal of Production Economics, Elsevier, vol. 140(2), pages 691-701.
    15. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    16. Abd El-Wahed, Waiel F. & Lee, Sang M., 2006. "Interactive fuzzy goal programming for multi-objective transportation problems," Omega, Elsevier, vol. 34(2), pages 158-166, April.
    17. Pınar Miç & Melik Koyuncu & Jamil Hallak, 2019. "Primary Health Care Center (PHCC) Location-Allocation with Multi-Objective Modelling: A Case Study in Idleb, Syria," IJERPH, MDPI, vol. 16(5), pages 1-23, March.
    18. Anu Antony & Ansted Iype Joseph, 2017. "Influence of Behavioural Factors Affecting Investment Decision—An AHP Analysis," Metamorphosis: A Journal of Management Research, , vol. 16(2), pages 107-114, December.
    19. Serkan Atmaca & Hacı Ahmet Karadaş, 2020. "Decision making on financial investment in Turkey by using ARDL long-term coefficients and AHP," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-22, December.
    20. Saul I. Gass, 2005. "Model World: The Great Debate—MAUT Versus AHP," Interfaces, INFORMS, vol. 35(4), pages 308-312, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:241:y:2015:i:1:p:188-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.