Divergence in reservation prices and its impact on housing market liquidity: A theoretical analysis

• 来源期刊: 管理科学学报（英文版）
• 关键词: Reservation Price Housing Market Liquidity English Auction
• 年，卷（期）: 2018,（3）
• 页码范围: 141-157
• 页数: 17页
• 语种: 中文
• DOI: 10.3724/SP.J.1383.303008

摘要

In this paper,we build a two-period English auction model to study the relative movements between buyers' and sellers' reservation prices in the housing market.We show that changes in sellers' reservation prices are jointly determined by changes in buyers' reservation prices,probability of buyers offering a high or low price,and the arrival rate of buyers.When the divergence between the buyers' and sellers' reservation prices widens,the probability of sale increases in the upward market and decreases in the downward market,contributing to the increases or decreases in market liquidity.