How to Efficiently Allocate Houses under Price Controls?
(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:
https://lup.lub.lu.se/record/4498746
- author
- Andersson, Tommy LU ; Yang, Zaifu and Zhang, Dongmo
- organization
- publishing date
- 2014
- type
- Working paper/Preprint
- 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 University
- language
- English
- LU publication?
- yes
- id
- d6aa0b9b-d094-4d93-ada9-5df419910d4e (old id 4498746)
- date added to LUP
- 2016-04-04 11:07:48
- date last changed
- 2024-09-15 23:10:55
@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}}, keywords = {{Ascending auction; assignment market; price control; Pareto efficiency; core}}, language = {{eng}}, note = {{Working Paper}}, publisher = {{Department of Economics, Lund University}}, series = {{Working Paper / Department of Economics, School of Economics and Management, Lund University}}, title = {{How to Efficiently Allocate Houses under Price Controls?}}, url = {{https://lup.lub.lu.se/search/files/195210391/WP14_24.pdf}}, volume = {{24}}, year = {{2014}}, }