Entrepreneurial Land Developers: Local Externalities and Mixed Housing Developments
2011/03/08
研討會日期 : 2011-03-08
時間 : 14:30
主講人 : Professor Hideo Konishi
地點 : Conference Room B110
演講者簡介 : Hideo Konishi got his Ph.D. in Economics from University of Rochester in 1994. He is currently serving as Professor of Department of Economic at Boston College. His research field is in microeconomic theory, public economics, urban economics, game theory, industrial organization, and international trade.
演講摘要 : Housing developments (condos and suburban developments) are not necessarily homogeneous. Developers provide different types of units with various sizes and other characteristics catering to different types of customers. In this paper, we allow local externalities among consumers within the development: some consumers would be happy to pay high prices for the most prestigious units in the development, while some are happy to have modest units as long as the prices are good. We consider land developers who seek the optimal mix of units in the developments to maximize their profits. We show that there exists an equilibrium, which is Pareto efficient as long as consumers and developers are optimistic in a certain sense. We provide examples in which mixed developments are more profitable to the developers. We relate this work with widely used hedonic pricing model by Rosen (1974), and with an equilibrium concept under asymmetric information in Rothschild and Stiglitz (1976).
