J Real Estate Finan Econ (2007) 35:1–5 DOI 10.1007/s11146-007-9030-1 Abdullah Yavas Published online: 30 March 2007 # Springer Science + Business Media, LLC 2007 Each real estate transaction involves a number of strategic decisions. First, the seller needs to determine an optimal asking price under incomplete information without the knowledge of the preferences and valuations of potential buyers. Then, sellers and buyers have to decide on an optimal search strategy, an optimal reservation price and an associated stopping rule. However, a contact between the buyer and seller does not necessarily result in a mutually acceptable match, depending on the reservation prices and outside options of the two sides. Once a contact is achieved, the two sides engage in a bargaining game, again under incomplete information without the knowledge of each other’s reservation prices. If the bargaining results in an agreement, then a sale contract is signed. To finance the purchase, the buyer often chooses among a rich menu of mortgage contracts, where the choices offered by the lender often aims at screening borrowers of different risk types. Along the way, the buyer and seller deal with agents and intermediaries, including lawyers, lending agencies and real estate brokers, and they
The Journal of Real Estate Finance and Economics – Springer Journals
Published: Mar 30, 2007
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera