Monopolistic Competition and Price Discrimination as a Development Company Strategy in the Primary Housing Market

Title:

Monopolistic Competition and Price Discrimination as a Development Company Strategy in the Primary Housing Market

Creator:

Łaszek, Jacek, Olszewski, Krzysztof, and Waszczuk, Joanna

Identifier:

https://cdk.lib.cas.cz/client/handle/uuid:c9080da1-0acb-4a5c-9e13-f40c30aba481
uuid:c9080da1-0acb-4a5c-9e13-f40c30aba481
doi:10.13060/23362839.2016.3.2.286

Subject:

Monopolistic competition, price differentiation, housing market, and information asymmetry

Type:

article, model:article, and TEXT

Description:

Firms operating in the property sector use information asymmetry and the local monopoly to differentiate prices of housing units. Selling similar housing to purchasers at various prices allows them to maximize profits. The aim of this article is to analyze empirically the behavior of developers, that shape the market situation. It is necessary to depart from the classical analysis of enterprises that operate in a free and competitive market and produce typical, homogeneous goods. We analyze firms that produce heterogeneous goods and make individual trans-actions with each client. We use the hedonic regression to compare the theoretical and empirical prices per sq. m. of dwelling in the primary market in Warsaw and find significant dispersions. The price discrimination strategy, can be one of the explanations of the observed high, upward elasticity of prices.

Language:

English

Rights:

http://creativecommons.org/licenses/by-nc-sa/4.0/
policy:public

Source:

Critical Housing Analysis | 2016 Volume:3 | Number:2

Harvested from:

CDK

Metadata only:

false