TY - JOUR
T1 - Sealed-Bid Auctions and Fixed Price Sales
T2 - Seller Choice in Housing Markets
AU - Buschbom, Stephen
AU - Dehring, Carolyn
AU - Dunse, Neil
AU - Munneke, Henry
N1 - Publisher Copyright:
© 2017, Springer Science+Business Media New York.
PY - 2018/5/1
Y1 - 2018/5/1
N2 - The choice of marketing system used to allocate property rights is important across many industries. In Scotland, two systems of marketing real property co-exist: fixed price, where homes are listed for sale at a fixed price on “first-come-first-serve” basis, and offers over, which is a sealed-bid auction format where the seller indicates a floor for bids. Using 4,780 detached housing sales between 1984 and 2002, this paper explores potential price effects of the seller’s choice of marketing system. Specifically, a log price model is estimated based on transactions under both marketing systems acknowledging endogeneity in the choice of marketing system. The empirical procedure reveals that sellers select the marketing system which results in the highest predicted price for their property.
AB - The choice of marketing system used to allocate property rights is important across many industries. In Scotland, two systems of marketing real property co-exist: fixed price, where homes are listed for sale at a fixed price on “first-come-first-serve” basis, and offers over, which is a sealed-bid auction format where the seller indicates a floor for bids. Using 4,780 detached housing sales between 1984 and 2002, this paper explores potential price effects of the seller’s choice of marketing system. Specifically, a log price model is estimated based on transactions under both marketing systems acknowledging endogeneity in the choice of marketing system. The empirical procedure reveals that sellers select the marketing system which results in the highest predicted price for their property.
KW - First-price sealed bid auctions
KW - Housing markets
KW - Selection bias
UR - http://www.scopus.com/inward/record.url?scp=85014525973&partnerID=8YFLogxK
U2 - 10.1007/s11146-017-9603-6
DO - 10.1007/s11146-017-9603-6
M3 - Article
AN - SCOPUS:85014525973
SN - 0895-5638
VL - 56
SP - 525
EP - 545
JO - Journal of Real Estate Finance and Economics
JF - Journal of Real Estate Finance and Economics
IS - 4
ER -