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How to Efficiently Allocate Houses under Price Controls?

Andersson, Tommy LU ; Yang, Zaifu and Zhang, Dongmo (2014) In Working Paper / Department of Economics, School of Economics and Management, Lund University 24.
Abstract
Price controls are used in many regulated markets and well recognized as the cause of market inefficiency. This paper examines a practical housing market in the presence of price controls and provides a solution to the problem of how houses should be efficiently allocated among agents through a system of prices. We demonstrate that the dynamic auction by Talman and Yang (2008) always finds a core allocation in finitely many iterations, thus resulting in a Pareto efficient outcome.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Ascending auction, assignment market, price control, Pareto efficiency, core
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
volume
24
pages
17 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
d6aa0b9b-d094-4d93-ada9-5df419910d4e (old id 4498746)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2014_024.htm
date added to LUP
2014-07-22 12:50:37
date last changed
2016-09-08 14:29:21
@misc{d6aa0b9b-d094-4d93-ada9-5df419910d4e,
  abstract     = {Price controls are used in many regulated markets and well recognized as the cause of market inefficiency. This paper examines a practical housing market in the presence of price controls and provides a solution to the problem of how houses should be efficiently allocated among agents through a system of prices. We demonstrate that the dynamic auction by Talman and Yang (2008) always finds a core allocation in finitely many iterations, thus resulting in a Pareto efficient outcome.},
  author       = {Andersson, Tommy and Yang, Zaifu and Zhang, Dongmo},
  keyword      = {Ascending auction,assignment market,price control,Pareto efficiency,core},
  language     = {eng},
  note         = {Working Paper},
  pages        = {17},
  publisher    = {Department of Economics, Lund Universtiy},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {How to Efficiently Allocate Houses under Price Controls?},
  volume       = {24},
  year         = {2014},
}