Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30184
A Game-Theoretic Approach to Hedonic Housing Prices

Authors: Cielito F. Habito, Michael O. Santos, Andres G. Victorio

Abstract:

A property-s selling price is described as the result of sequential bargaining between a buyer and a seller in an environment of asymmetric information. Hedonic housing prices are estimated based upon 17,333 records of New Zealand residential properties sold during the years 2006 and 2007.

Keywords: Housing demand, hedonics and valuation, residentialmarkets.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1071596

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 972

References:


[1] A. D. Witte, H. J. Sumka and H. Erekson., "An estimate of a structural hedonic price model of the housing market: An application of Rosen-s theory of implicit markets," Econometrica, vol. 47, pp. 1151-1173, Sept. 1979.
[2] R. B. Palmquist, "Estimating the demand for the characteristics of housing," Review of Economics and Statistics, vol. 66, pp. 394-404, Aug. 1984.
[3] R. T. Gretz, "Console price and software availability in the home video game industry," Atlantic Economic Journal, vol. 38, pp. 81-94, Mar. 2010.
[4] K. J. Lancaster, "A new approach to consumer theory," Journal of Political Economy, vol. 74, pp. 132-157, Apr. 1966.
[5] H. S. Rosen, "Hedonic prices and implicit markets: Product differentiation in pure competition," Journal of Political Economy, vol. 82, pp. 34-35, Feb. 1974.
[6] J. N. Brown and H. S. Rosen, "On the estimation of structural hedonic price models," Econometrica, vol. 50, pp. 765-768, May 1982.
[7] D. Epple, "Hedonic prices and implicit markets: Estimating demand and supply functions for differentiated products," Journal of Political Economy, vol. 95, pp. 59-80, Feb. 1987.
[8] C. Mason and J. M. Quigley, "Non-parametric hedonic housing prices," Housing Studies, vol. 11, pp. 373-385, July 1996.
[9] T. J. Bartik, "The estimation of demand parameters in hedonic price models," Journal of Political Economy, vol. 95, pp. 81-88, Feb. 1987.
[10] P. Bajari and C. L. Benkard, "Demand estimation with heterogenous consumers and unobserved product characteristics: A hedonic approach," Journal of Political Economy, vol. 113, pp. 1239-1275, Dec. 2005.
[11] A. Rubinstein, "A bargaining model with incomplete information about time preferences," Econometrica, vol. 50, pp. 97-109, Jan. 1982.
[12] A. Ben-Ner and B. Jun, "Employee buyout in a bargaining game with asymmetric information," American Economic Review, vol. 86, pp. 502- 523, June 1996.
[13] A. G. Victorio, A. G., "Search theory and subsidized housing demand," Applied Economics Letters, vol. 14, pp. 395-400, May 2007.