IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/57629.html
   My bibliography  Save this paper

Information and Competitive Equilibria in the Housing Market

Author

Listed:
  • Soldatos, Gerasimos T.

Abstract

This paper derives necessary and sufficient conditions for the existence and occurrence likelihood of competitive equilibria in urban land and housing markets: (i) when there is imperfect information causing costly search trips and (ii) when land and housing are differentiated according to betweenzone and within-zone heterogeneity. Such competitive equilibria are contingent on the possibility that consumers spill over into the markets of less preferred zones. The main conclusions are that markets tend to be partitioned into homogeneous sub-groups and when they do not, heterogeneity may hamper the effectiveness of search and hence work against the existence of competitive equilibria.

Suggested Citation

  • Soldatos, Gerasimos T., 1990. "Information and Competitive Equilibria in the Housing Market," MPRA Paper 57629, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57629
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/57629/1/MPRA_paper_57629.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alan Schwartz & Louis L. Wilde, 1982. "Competitive Equilibria in Markets for Heterogeneous Goods under Imperfect Information: A Theoretical Analysis with Policy Implications," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 181-193, Spring.
    2. Steven C. Salop, 1976. "Information and monopolistic competition," Special Studies Papers 74, Board of Governors of the Federal Reserve System (U.S.).
    3. Salop, Steven, 1976. "Information and Monopolistic Competition," American Economic Review, American Economic Association, vol. 66(2), pages 240-245, May.
    4. Courant, Paul N., 1978. "Racial prejudice in a search model of the urban housing market," Journal of Urban Economics, Elsevier, vol. 5(3), pages 329-345, July.
    5. Yinger, John, 1981. "A Search Model of Real Estate Broker Behavior," American Economic Review, American Economic Association, vol. 71(4), pages 591-605, September.
    6. Blomquist, Glenn & Worley, Lawrence, 1981. "Hedonic prices, demands for urban housing amenities, and benefit estimates," Journal of Urban Economics, Elsevier, vol. 9(2), pages 212-221, March.
    7. M.J.H. Mogridge, 1985. "Transport, Land Use and Energy Interaction," Urban Studies, Urban Studies Journal Limited, vol. 22(6), pages 481-492, December.
    8. John F. McDonald, 1985. "Expectations and Urban Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 22(6), pages 543-549, December.
    Full references (including those not matched with items on IDEAS)

    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. Garcia, René, 1986. "La théorie économique de l’information : exposé synthétique de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 62(1), pages 88-109, mars.
    2. Shonkwiler, John Scott & Pagoulatos, Emilio, 1980. "A Model Of Weekly Price Discovery For Florida Celery," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-6, July.
    3. Enzo Dia, 2004. "Monopolistic Pricing in the Banking Industry: a Dynamic Portfolio Model," Finance 0411025, University Library of Munich, Germany.
    4. Jack High, 1984. "Bork'S Paradox: Static Vs. Dynamic Efficiency In Antitrust Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 3(2), pages 21-34, December.
    5. Christine Moorman & Rosellina Ferraro & Joel Huber, 2012. "Unintended Nutrition Consequences: Firm Responses to the Nutrition Labeling and Education Act," Marketing Science, INFORMS, vol. 31(5), pages 717-737, September.
    6. Enzo Dia, 2004. "Monopolistic Pricing in the Banking Industry: a Dynamic Model," Working Papers 73, University of Milano-Bicocca, Department of Economics, revised May 2004.
    7. Stiglitz, Joseph E., 2017. "Monopolistic competition, the Dixit–Stiglitz model, and economic analysis," Research in Economics, Elsevier, vol. 71(4), pages 798-802.
    8. Ruyun (Ivy) Feng & Michael D. Kimbrough & Sijing Wei, 2022. "The role of information transparency in the product market: an examination of the sustainability of profitability differences," Review of Accounting Studies, Springer, vol. 27(2), pages 668-705, June.
    9. Enzo Dia, 2004. "Imperfect Information and Monopolistic Pricing in the Banking Industry," Working Papers 74, University of Milano-Bicocca, Department of Economics, revised May 2004.
    10. T. Huw Edwards, 2006. "Search and the Path-Dependency of Trade," Discussion Paper Series 2006_12, Department of Economics, Loughborough University, revised May 2006.
    11. Joseph E. Stiglitz, 1991. "The Invisible Hand and Modern Welfare Economics," NBER Working Papers 3641, National Bureau of Economic Research, Inc.
    12. Alain Herscovici, 2011. "Informação,Conhecimento E Direitos De Propriedade Intelectual: Os Limites Dosmecanismos De Mercado E Das Modalidades De Negociação Privada," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 131, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    13. Xu, Fei & Liu, Qian & Zheng, Xingdong & Cao, Luqi & Yang, Mian, 2022. "Research on the impact of China's high-speed rail opening on enterprise market power: Based on the perspective of market segmentation," Transport Policy, Elsevier, vol. 128(C), pages 121-137.
    14. Howard, Wayne H. & Knight, Thomas O. & Shumway, C. Richard & Blake, Robert W. & Tomaszewski, Michael A., 1987. "Information and Herd Health Management Practices in Texas Dairies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(2), pages 1-10, December.
    15. Christy, Ralph D., 1994. "Private Strategies and Public Policies: The Economics of Information and the Economic Organization of Markets," Staff Papers 121314, Cornell University, Department of Applied Economics and Management.
    16. Gravelle, Hugh & Sivey, Peter, 2010. "Imperfect information in a quality-competitive hospital market," Journal of Health Economics, Elsevier, vol. 29(4), pages 524-535, July.
    17. Christine Moorman & Rex Du & Carl F. Mela, 2005. "The Effect of Standardized Information on Firm Survival and Marketing Strategies," Marketing Science, INFORMS, vol. 24(2), pages 263-274, September.
    18. Raess, Pascal & von Ungern-Sternberg, Thomas, 2002. "A model of regulation in the rental housing market," Regional Science and Urban Economics, Elsevier, vol. 32(4), pages 475-500, July.
    19. Lent, Rebecca J., 1985. "Imperfect Information And The Firm'S Decision Process: Applications To The Pacific Salmon Market," 1985 Annual Meeting, August 4-7, Ames, Iowa 278663, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Li, Lan & Carman, Hoy F. & Sexton, Richard J., 2005. "Grocery Retailer Pricing Behavior for California Avocados with Implications for Industry Promotion Strategies," 2005 Annual meeting, July 24-27, Providence, RI 19498, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Housing; Between- and within-zone heterogeneity; Search costs; Competition;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

    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:pra:mprapa:57629. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.