Measuring the Cost of Imperfect Information in the Tokyo Housing Market
Kiyohiko G. Nishimura and
Additional contact information
Chihiro Shimizu: RECRUIT Real Estate Research Institute
Kiyohiko G. Nishimura: Faculty of Economics, University of Tokyo
No CIRJE-F-238, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo
The cost of imperfect information is estimated in the real estate market of resale condominiums in central Tokyo by using a new, comprehensive data set of resale condominium transactions. The results suggest a substantial cost. Specifically, if information were perfectly available and marketing time is null, sellers would get benefits of 10.58% based on average interest rate, 31.28% on gross rent and 22.59% on net rent, against imputed rent of their property. Buyers spend 1,042,000 Yen on search activities for one transaction, which would be saved if information were prefect. This cost amounts to be equivalent to 13.2% of buyers' average annual income.
New Economics Papers: this item is included in nep-mic and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2003cf238
Access Statistics for this paper
More papers in CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by CIRJE administrative office ().