TY - JOUR
T1 - Estimating bargaining power in the market for existing homes
AU - Harding, John P.
AU - Rosenthal, Stuart S.
AU - Sirmans, C. F.
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2003/2
Y1 - 2003/2
N2 - Although bargaining is common in markets for heterogeneous goods, it has largely been ignored in the hedonic literature. In a break from that tradition, we establish sufficient conditions that permit one to identify the effect of buyer and seller bargaining on hedonic models. Our model is estimated using a previously overlooked feature of the American Housing Survey that permits us to observe characteristics of both buyers and sellers. Results suggest that household wealth, gender, and other demographic traits influence bargaining power. In addition, variation in bargaining power arising from the presence of school-age children accounts for anomalous seasonal patterns reported in various widely cited indices of quality-adjusted house prices.
AB - Although bargaining is common in markets for heterogeneous goods, it has largely been ignored in the hedonic literature. In a break from that tradition, we establish sufficient conditions that permit one to identify the effect of buyer and seller bargaining on hedonic models. Our model is estimated using a previously overlooked feature of the American Housing Survey that permits us to observe characteristics of both buyers and sellers. Results suggest that household wealth, gender, and other demographic traits influence bargaining power. In addition, variation in bargaining power arising from the presence of school-age children accounts for anomalous seasonal patterns reported in various widely cited indices of quality-adjusted house prices.
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U2 - 10.1162/003465303762687794
DO - 10.1162/003465303762687794
M3 - Review article
AN - SCOPUS:0037319451
SN - 0034-6535
VL - 85
SP - 178
EP - 188
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 1
ER -