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

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  • 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
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