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How to Efficiently Allocate Houses under Price Controls?

Andersson, Tommy LU ; Yang, Zaifu and Zhang, Dongmo (2014) In Working Papers
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
; and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
Ascending auction, assignment market, price control, Pareto efficiency, core
in
Working Papers
issue
2014:24
pages
17 pages
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
2025-04-04 14:58:05
@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}},
  number       = {{2014:24}},
  series       = {{Working Papers}},
  title        = {{How to Efficiently Allocate Houses under Price Controls?}},
  url          = {{https://lup.lub.lu.se/search/files/195210391/WP14_24.pdf}},
  year         = {{2014}},
}