Utility Theory and Rent Optimization: Utilizing Cluster Analysis to Segment Rental Markets

Charles A. Smith and Mark J. Kroll
Additional contact information
Charles A. Smith: Department of Business Management and Administrative Services University of Houston-Downtown Houston, Texas 77002, http://www.dt.uh.edu/academic/colleges/business/bmas/bmas.htm
Mark J. Kroll: Department of Management and Marketing University of Texas at Tyler Tyler, Texas 75701, http://www.uttyler.edu/cba/index.htm

Journal of Real Estate Research, 1989, vol. 4, issue 1, 61-71

Abstract: The research reported here segments apartment residents and units into homogeneous groups. This segmentation is accomplished via cluster analysis. The purpose of the research is to identify market segments with higher marginal utility preferences for selected project or unit amenities; with the ultimate goal of rental rate optimization. The uniqueness of the research is twofold in that the "tenant response" based hedonic analysis is modeled via cluster analysis instead of the typical regressive framework. The usefulness of the research is based in the presentation of a methodology that should at least be considered as an adjunct technique to the typical regression analysis.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1989
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol04n01/v04p061.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:4:n:1:1989:p:61-71

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 ().