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Transferring Ownership of Public Housing to Existing Tenants : A Market Design Approach

Andersson, Tommy LU ; Ehlers, Lars LU and Svensson, Lars-Gunnar LU (2016) In Journal of Economic Theory 165. p.643-671
Abstract
This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he is currently possessing, or continue renting the house he is currently occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the minimum price equilibrium selecting mechanism that transfers the maximum number of... (More)
This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he is currently possessing, or continue renting the house he is currently occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the minimum price equilibrium selecting mechanism that transfers the maximum number of ownerships to the existing tenants. We also relate the theoretical model and the main findings to the U.K. Housing Act 1980 whose main objective is to transfer ownerships of houses to existing tenants. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Existing tenants, equilibrium, minimum equilibrium prices, maximum trade, group non-manipulability, C71, C78, D71 , D78
in
Journal of Economic Theory
volume
165
pages
29 pages
publisher
Elsevier
external identifiers
  • Scopus:84982182205
ISSN
0022-0531
DOI
10.1016/j.jet.2016.07.004
language
English
LU publication?
yes
id
711b09d0-6991-44bf-84de-36629bd36a0f
alternative location
http://www.sciencedirect.com/science/article/pii/S0022053116300461
date added to LUP
2016-07-24 23:50:59
date last changed
2016-11-23 09:02:16
@misc{711b09d0-6991-44bf-84de-36629bd36a0f,
  abstract     = {This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he is currently possessing, or continue renting the house he is currently occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the minimum price equilibrium selecting mechanism that transfers the maximum number of ownerships to the existing tenants. We also relate the theoretical model and the main findings to the U.K. Housing Act 1980 whose main objective is to transfer ownerships of houses to existing tenants.},
  author       = {Andersson, Tommy and Ehlers, Lars and Svensson, Lars-Gunnar},
  issn         = {0022-0531},
  keyword      = {Existing tenants,equilibrium,minimum equilibrium prices,maximum trade,group non-manipulability,C71,C78,D71  ,  D78},
  language     = {eng},
  month        = {09},
  pages        = {643--671},
  publisher    = {ARRAY(0xdbde530)},
  series       = {Journal of Economic Theory},
  title        = {Transferring Ownership of Public Housing to Existing Tenants :  A Market Design Approach},
  url          = {http://dx.doi.org/10.1016/j.jet.2016.07.004},
  volume       = {165},
  year         = {2016},
}