IDEAS home Printed from https://ideas.repec.org/a/taf/rptpxx/v18y2017i2p217-232.html
   My bibliography  Save this article

What price planning? Reimagining planning as “market maker”

Author

Listed:
  • Alex Lord
  • Philip O’Brien

Abstract

Planning has been widely vilified for the role it plays in disrupting the development process, hindering economic growth and creating the conditions for undersupply in housing markets, characterised by unaffordability. In this paper we hope to show that the analyses that support this view of planning are incomplete because of the theoretical limitations of the neoclassical tradition from which they emerge. By way of alternative we posit an account of planning that draws upon game theory and behavioural economics to explore those aspects of the activity that serve to animate the development process. This interpretation of planning as a “market maker” is explored through empirical case study research from three continental European contexts where planning is charged with playing an economically active role to control liquidity.

Suggested Citation

  • Alex Lord & Philip O’Brien, 2017. "What price planning? Reimagining planning as “market maker”," Planning Theory & Practice, Taylor & Francis Journals, vol. 18(2), pages 217-232, April.
    • Handle: RePEc:taf:rptpxx:v:18:y:2017:i:2:p:217-232
    DOI: 10.1080/14649357.2017.1286369
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14649357.2017.1286369
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14649357.2017.1286369?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. Max Nathan & Henry G. Overman, 2011. "What We Know (and Don't Know) About the Links between Planning and Economic Performance," SERC Policy Papers 010, Centre for Economic Performance, LSE.
    2. Garbade, Kenneth D & Silber, William L, 1979. "Structural Organization of Secondary Markets: Clearing Frequency, Dealer Activity and Liquidity Risk," Journal of Finance, American Finance Association, vol. 34(3), pages 577-593, June.
    3. David Adams & Alan Disberry & Norman Hutchison & Thomas Munjoma, 2001. "Managing Urban Land: The Case for Urban Partnership Zones," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 153-162.
    4. repec:bla:jfinan:v:43:y:1988:i:3:p:617-37 is not listed on IDEAS
    5. M Tewdwr-Jones & P Allmendinger, 1998. "Deconstructing Communicative Rationality: A Critique of Habermasian Collaborative Planning," Environment and Planning A, , vol. 30(11), pages 1975-1989, November.
    6. Philip Straffin, 1977. "Homogeneity, independence, and power indices," Public Choice, Springer, vol. 30(1), pages 107-118, June.
    7. Anand, Paul & Lea, Stephen, 2011. "The Economic Psychology of Poverty," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 205-205, March.
    8. Christian A. L. Hilber & Wouter Vermeulen, 2016. "The Impact of Supply Constraints on House Prices in England," Economic Journal, Royal Economic Society, vol. 126(591), pages 358-405, March.
    9. Datuk Ary Adriansyah Samsura & Erwin van der Krabben & A.M.A. van Deemen & R.E.C.M. van der Heijden, 2015. "Negotiation processes in land and property development: an experimental study," Journal of Property Research, Taylor & Francis Journals, vol. 32(2), pages 173-191, June.
    10. Grossman, S.J. & Miller, M.H., 1988. "Liquidity And Market Structure," Papers 88, Princeton, Department of Economics - Financial Research Center.
    11. Andrea Mantovani, 2013. "The Strategic Effect of Bundling: A New Perspective," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(1), pages 25-43, February.
    12. Anand, Paul & Lea, Stephen, 2011. "The psychology and behavioural economics of poverty," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 284-293, March.
    13. Teichert, Thorsten & von Wartburg, Iwan & Braterman, Russell, 2006. "Tacit meaning in disguise: Hidden metaphors in new product development and market making," Business Horizons, Elsevier, vol. 49(6), pages 451-461.
    14. Venkataraman, Kumar & Waisburd, Andrew C., 2007. "The Value of the Designated Market Maker," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 42(3), pages 735-758, September.
    15. Nicole Gurran & Peter Phibbs, 2013. "Housing supply and urban planning reform: the recent Australian experience, 2003–2012," International Journal of Housing Policy, Taylor & Francis Journals, vol. 13(4), pages 381-407, December.
    16. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
    17. Howell Baum, 2015. "Planning with half a mind: Why planners resist emotion," Planning Theory & Practice, Taylor & Francis Journals, vol. 16(4), pages 498-516, October.
    18. Nicole Gurran & Peter Phibbs, 2013. "Housing supply and urban planning reform: the recent Australian experience, 2003–2012," European Journal of Housing Policy, Taylor and Francis Journals, vol. 13(4), pages 381-407, December.
    19. Godley, Andrew C. & Casson, Mark C., 2015. "‘Doctor, Doctor. . .’ entrepreneurial diagnosis and market making," Journal of Institutional Economics, Cambridge University Press, vol. 11(3), pages 601-621, September.
    20. Chakravarty,Satya R. & Mitra,Manipushpak & Sarkar,Palash, 2015. "A Course on Cooperative Game Theory," Cambridge Books, Cambridge University Press, number 9781107058798, November.
    21. Zhu, Mei & Chiarella, Carl & He, Xue-Zhong & Wang, Duo, 2009. "Does the market maker stabilize the market?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(15), pages 3164-3180.
    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. O’Brien, Philip & Lord, Alex & Dembski, Sebastian, 2020. "How do planners manage risk in alternative land development models? An institutional analysis of land development in the Netherlands," Land Use Policy, Elsevier, vol. 91(C).
    2. Dunning, Richard J. & Moore, Tom & Watkins, Craig, 2021. "The use of public land for house building in England: Understanding the challenges and policy implications," Land Use Policy, Elsevier, vol. 105(C).

    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. Flepp, Raphael & Nüesch, Stephan & Franck, Egon, 2017. "The liquidity advantage of the quote-driven market: Evidence from the betting industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 64(C), pages 306-317.
    2. Murphy Jun Jie Lee, 2013. "The Microstructure of Trading Processes on the Singapore Exchange," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 4, July-Dece.
    3. Oscar Jorda & Holly Liu & Jeffrey Williams, 2003. "Non-Institutional Market Making Behavior: The Dalian Futures Exchange," Working Papers 41, University of California, Davis, Department of Economics.
    4. Spears Dean, 2011. "Economic Decision-Making in Poverty Depletes Behavioral Control," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-44, December.
    5. Katrina Raynor & Severine Mayere & Tony Matthews, 2018. "Do ‘city shapers’ really support urban consolidation? The case of Brisbane, Australia," Urban Studies, Urban Studies Journal Limited, vol. 55(5), pages 1056-1075, April.
    6. Chordia, Tarun & Roll, Richard & Subrahmanyam, Avanidhar, 2000. "Commonality in liquidity," Journal of Financial Economics, Elsevier, vol. 56(1), pages 3-28, April.
    7. Hendershott, Terrence & Menkveld, Albert J., 2014. "Price pressures," Journal of Financial Economics, Elsevier, vol. 114(3), pages 405-423.
    8. Antoine Paccoud & Markus Hesse & Tom Becker & Magdalena Górczyńska, 2022. "Land and the housing affordability crisis: landowner and developer strategies in Luxembourg’s facilitative planning context," Housing Studies, Taylor & Francis Journals, vol. 37(10), pages 1782-1799, October.
    9. Rosita P. Chang & Shuh‐Tzy Hsu & Nai‐Kuan Huang & S. Ghon Rhee, 1999. "The Effects of Trading Methods on Volatility and Liquidity: Evidence from the Taiwan Stock Exchange," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(1‐2), pages 137-170, January.
    10. Huub Ploegmakers & Pascal Beckers & Erwin Van der Krabben, 2018. "The impact of planning intervention on business development: Evidence from the Netherlands," Urban Studies, Urban Studies Journal Limited, vol. 55(14), pages 3252-3273, November.
    11. Tomasz Potocki, 2022. "Locating Financial Capability Within Capability Approach – Theoretical Survey," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 96-106.
    12. Korthals Altes, Willem K., 2019. "Planning initiative: Promoting development by the use of options in Amsterdam," Land Use Policy, Elsevier, vol. 83(C), pages 13-21.
    13. Bruno Biais & Pierre-Olivier Weill, 2009. "Liquidity Shocks and Order Book Dynamics," NBER Working Papers 15009, National Bureau of Economic Research, Inc.
    14. Kehr, Carl-Heinrich & Krahnen, Jan P. & Theissen, Erik, 2001. "The Anatomy of a Call Market," Journal of Financial Intermediation, Elsevier, vol. 10(3-4), pages 249-270, July.
    15. Lim, Sung Soo & Bone, Matthew, 2022. "Optimism, debt accumulation, and business growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    16. Li, Jianhua & Xu, Jianxiang, 2023. "Does the introduction of market maker improve market quality? Evidence from China's Sci-Tech innovation board," Finance Research Letters, Elsevier, vol. 55(PA).
    17. Shmuel Hauser & Azriel Levy & Uzi Yaari, 2001. "Trading frequency and the efficiency of price discovery in a non-dealer market," The European Journal of Finance, Taylor & Francis Journals, vol. 7(3), pages 187-197.
    18. Murray, Cameron K., 2020. "Time is money: How landbanking constrains housing supply," Journal of Housing Economics, Elsevier, vol. 49(C).
    19. Asadullah, Mohammad Niaz & Chaudhury, Nazmul, 2012. "Subjective well-being and relative poverty in rural Bangladesh," Journal of Economic Psychology, Elsevier, vol. 33(5), pages 940-950.
    20. Theissen, Erik & Westheide, Christian, 2020. "Call of duty: Designated market maker participation in call auctions," Journal of Financial Markets, Elsevier, vol. 49(C).

    More about this item

    Statistics

    Access and download statistics

    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:taf:rptpxx:v:18:y:2017:i:2:p:217-232. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rptp20 .

    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.