Asymmetric Information and List Price Reductions in the Housing Market

Erik de Wit and Bas van der Klaauw

No 10-038/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the 'Regional Science and Urban Economics' , 2013, 43, 507-520.

In housing markets with asymmetric information list prices may signal unobserved properties of the house or the seller. Asymmetric information is the starting point of many models for the housing market. In this paper, we estimate the causal effect of list-price reductions to test for the presence of asymmetric information. We use very rich and extensive administrative data from the Netherlands. Our empirical results show that list-price reductions significantly increase the probability of selling a house, but also the rate of withdrawal from the market increases.

Keywords: Time-on-the-market; duration analysis; transaction prices; selectivity (search for similar items in EconPapers)
JEL-codes: C41 D82 R21 R31 (search for similar items in EconPapers)
Date: 2010-04-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://papers.tinbergen.nl/10038.pdf (application/pdf)

Related works:
Journal Article: Asymmetric information and list-price reductions in the housing market (2013)
Working Paper: Asymmetric Information and List Price Reductions in the Housing Market (2010)
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:tin:wpaper:20100038

Access Statistics for this paper

More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().