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Who Affected the Second-hand House Transaction Prices——Empirical Evidence from Beijing
Pages: 126-140
Year: Issue:  2
Journal: Finance & Trade Economics

Keyword:  Asymmetry InformationBargaining PowerHousing Price;
Abstract: Base on the micro data of second-hand house transactions in Beijing market,this paper adopts Bilateral Frontier Stochastic Model to measure the degree of information asymmetry between the buyers and sellers under the circumstances that they both entrust estate agents to make transactions,and we try to analyze the effect of information asymmetry on the estate price.The present study shows that:(1)From the perspective of whole sample,the sellers will achieve a price at least 1.58% below the market benchmark on average,and the buyers will pay aprice at least 1.22%~8.36% above the market benchmark price on average;(2)In terms of the ordinary housing,the buyers will pay at least 0.38%~1.07% higher than the market benchmark price,and in terms of the non-ordinary housing,the buyers will pay at least0.40%~1.09% higher than the market benchmark price.It can be seen that the buyers and sellers,as the delegates,are forced to accept the unfair bargaining position in the transactions dominated by the estate agents who are the only beneficiary.From what has been discussed above,the government should focus on changing the asymmetry information situation that is unilaterally dominated by estate agents.The sellers and buyers should pay attention to the contract design of incentive and constraint mechanism under the principal-agent relationship.
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