The Evidence of Buyer Bargaining Power in The Stockholm Residential Real Estate Market

Mats Wilhelmsson

Journal of Real Estate Research, 2008, vol. 30, issue 4, 475-500

Abstract: The objective is to investigate whether uninformed buyers pay higher prices for single-family houses than do other buyers and test whether the bargaining power increases with information. We examine data on real estate prices and attributes, as well as household characteristics and buying process from Stockholm. Our results show that uninformed buyers seem to pay a higher price than informed buyers do. Bargaining power is not weaker for a first-time buyer but is weaker if the household has participated in several biddings and lost. Repeated bidding-and-losing households are more willing to increase their reservation price and pay a higher overall price compared to other households.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol30n04/05.475_500.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:30:n:4:2008:p:475-500

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().