IDEAS home Printed from https://ideas.repec.org/a/aop/jijoes/v11y2022i2p13-27.html
   My bibliography  Save this article

A Housing Market with Cournot Competition and a Third Housing Sector

Author

Listed:
  • Trond-Arne Borgersen

    (Østfold University College)

Abstract

This paper integrates a non-profit third-housing sector (THS) into a housing market with Cournot competition. The paper analyses the indirect effects of a THS on the aggregate housing market, on a commercial housing supplier and on the market adaption of households not embraced by the THS. While beneficial for households included in the THS, a question arises related to the indirect effects of a THS. The paper argues for crowding-out and higher house prices in the commercial housing market in response to a THS expansion. In addition, a THS also affects the strategic behaviour of the commercial housing supplier. Compared to a conventional Cournot housing market, a fixed THS housing supply changes the market structure from one where the housing supply of different housing providers are alternative to one-another, to a market structure where housing supply is complementary.

Suggested Citation

  • Trond-Arne Borgersen, 2022. "A Housing Market with Cournot Competition and a Third Housing Sector," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 13-27, November.
    • Handle: RePEc:aop:jijoes:v:11:y:2022:i:2:p:13-27
    as

    Download full text from publisher

    File URL: https://eurrec.org/ijoes-article-117023
    Download Restriction: no
    File URL: https://eurrec.org/ijoes-article-117023?download=2
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scanlon, Kathleen & Fernández Arrigoitia, Melissa & Whitehead, Christine M E, 2015. "Social housing in Europe," LSE Research Online Documents on Economics 62938, London School of Economics and Political Science, LSE Library.
    2. Darinka Czischke, 2018. "Collaborative housing and housing providers: towards an analytical framework of multi-stakeholder collaboration in housing co-production," European Journal of Housing Policy, Taylor and Francis Journals, vol. 18(1), pages 55-81, January.
    3. Duca, John V. & Muellbauer, John & Murphy, Anthony, 2010. "Housing markets and the financial crisis of 2007-2009: Lessons for the future," Journal of Financial Stability, Elsevier, vol. 6(4), pages 203-217, December.
    4. Paul Chatterton, 2013. "Towards an Agenda for Post-carbon Cities: Lessons from Lilac, the UK's First Ecological, Affordable Cohousing Community," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(5), pages 1654-1674, September.
    5. Fudenberg, Drew & Tirole, Jean, 1984. "The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look," American Economic Review, American Economic Association, vol. 74(2), pages 361-366, May.
    6. Eriksen, Michael D. & Rosenthal, Stuart S., 2010. "Crowd out effects of place-based subsidized rental housing: New evidence from the LIHTC program," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 953-966, December.
    7. Agnello, Luca & Schuknecht, Ludger, 2011. "Booms and busts in housing markets: Determinants and implications," Journal of Housing Economics, Elsevier, vol. 20(3), pages 171-190, September.
    8. Marietta E.A. Haffner & Rachel Ong & Susan J. Smith & Gavin A. Wood, 2017. "The edges of home ownership – the borders of sustainability," European Journal of Housing Policy, Taylor and Francis Journals, vol. 17(2), pages 169-176, April.
    9. Darinka Czischke, 2018. "Collaborative housing and housing providers: towards an analytical framework of multi-stakeholder collaboration in housing co-production," International Journal of Housing Policy, Taylor & Francis Journals, vol. 18(1), pages 55-81, January.
    10. Klára Čermáková & Eduard Hromada, 2022. "Change in the Affordability of Owner-Occupied Housing in the Context of Rising Energy Prices," Energies, MDPI, vol. 15(4), pages 1-18, February.
    11. Trond Arne Borgersen, 2019. "Social Housing Policy in a Segmented Housing Market: Indirect Effects on Markets and on Individuals," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 8(2), pages 1-21, December.
    12. Sinai, Todd & Waldfogel, Joel, 2005. "Do low-income housing subsidies increase the occupied housing stock?," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2137-2164, December.
    13. Murray, Michael P, 1999. "Subsidized and Unsubsidized Housing Stocks 1935 to 1987: Crowding Out and Cointegration," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 107-124, January.
    14. Marietta E.A. Haffner & Rachel Ong & Susan J. Smith & Gavin A. Wood, 2017. "The edges of home ownership – the borders of sustainability," International Journal of Housing Policy, Taylor & Francis Journals, vol. 17(2), pages 169-176, April.
    15. Nordvik, Viggo, 2006. "Selective housing policy in local housing markets and the supply of housing," Journal of Housing Economics, Elsevier, vol. 15(4), pages 279-292, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lennon H. T. Choy & Winky K. O. Ho, 2023. "The Use of Machine Learning in Real Estate Research," Land, MDPI, vol. 12(4), pages 1-15, March.
    2. Caixia Liu, 2023. "Shantytown Redevelopment and Housing Prices: Empirical Evidence from Chinese Cities," Land, MDPI, vol. 12(4), pages 1-12, April.
    3. Judyta Kabus & Michał Dziadkiewicz, 2023. "Modern Management Methods in the Area of Public Housing Resources in the Community," Sustainability, MDPI, vol. 15(10), pages 1-28, May.
    4. Cyprian Chwiałkowski & Adam Zydroń & Dariusz Kayzer, 2022. "Assessing the Impact of Selected Attributes on Dwelling Prices Using Ordinary Least Squares Regression and Geographically Weighted Regression: A Case Study in Poznań, Poland," Land, MDPI, vol. 12(1), pages 1-20, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Jie & Nong, Huifu, 2016. "The heterogeneity of market supply effects of public housing provision: Empirical evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 115-127.
    2. Aimee Felstead & Kevin Thwaites & James Simpson, 2019. "A Conceptual Framework for Urban Commoning in Shared Residential Landscapes in the UK," Sustainability, MDPI, vol. 11(21), pages 1-24, November.
    3. Michael Klien & Gerhard Streicher, 2021. "Ökonomische Wirkungen des gemeinnützigen Wohnbaus," WIFO Studies, WIFO, number 66962, April.
    4. Eerola, Essi & Saarimaa, Tuukka, 2015. "Who benefits from public housing?," Bank of Finland Research Discussion Papers 30/2015, Bank of Finland.
    5. Trond Arne Borgersen, 2019. "Social Housing Policy in a Segmented Housing Market: Indirect Effects on Markets and on Individuals," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 8(2), pages 1-21, December.
    6. Xu, Hangtian & Zhou, Yiming, 2019. "Public housing provision and housing vacancies in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 53(C), pages 1-1.
    7. Eerola, Essi & Saarimaa, Tuukka, 2018. "Delivering affordable housing and neighborhood quality: A comparison of place- and tenant-based programs," Journal of Housing Economics, Elsevier, vol. 42(C), pages 44-54.
    8. Sock-Yong Phang, 2009. "Affordable homeownership policy : implications for housing markets," Microeconomics Working Papers 23052, East Asian Bureau of Economic Research.
    9. Freedman, Matthew & Owens, Emily G., 2011. "Low-income housing development and crime," Journal of Urban Economics, Elsevier, vol. 70(2), pages 115-131.
    10. Olsen, Edgar O. & Zabel, Jeffrey E., 2015. "US Housing Policy," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 887-986, Elsevier.
    11. Paulo M.M. Rodrigues & Rita Fradique Lourenço, 2015. "House prices: bubbles, exuberance or something else? Evidence from euro area countries," Working Papers w201517, Banco de Portugal, Economics and Research Department.
    12. Eriksen, Michael D. & Lang, Bree J., 2020. "Overview and proposed reforms of the low-income housing tax credit program," Regional Science and Urban Economics, Elsevier, vol. 80(C).
    13. Gabriel, Stuart A. & Rosenthal, Stuart S., 2010. "Do the GSEs expand the supply of mortgage credit? New evidence of crowd out in the secondary mortgage market," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 975-986, December.
    14. C. Grislain-Letrémy & C. Trevien, 2014. "The Impact of Housing Subsidies on the Rental Sector: the French Example," Documents de Travail de l'Insee - INSEE Working Papers g2014-08, Institut National de la Statistique et des Etudes Economiques.
    15. Goeyvaerts, Geert, 2023. "Reconstructing cities: Stimulating redevelopment through the tax code," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    16. Konstantin Kholodilin, 2015. "Speculative Bubbles in Urban Housing Markets in Germany," ERSA conference papers ersa15p67, European Regional Science Association.
    17. Noémie Dominguez & Patricia Loncle & Emanuelle Maunaye & Eunice Cascant & Catherine Mercier-Suissa & Emily Mugel & Maité Pinchon & Nancy Ottaviano, 2021. "Overview of Refugees’ access to housing in France: the metropoles of Lyon and Rennes," Working Papers halshs-03448067, HAL.
    18. Blanco, Hector, 2023. "Pecuniary effects of public housing demolitions: Evidence from Chicago," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    19. He, Yinghua & O'Flaherty, Brendan & Rosenheck, Robert A., 2010. "Is shared housing a way to reduce homelessness? The effect of household arrangements on formerly homeless people," Journal of Housing Economics, Elsevier, vol. 19(1), pages 1-12, March.
    20. Neumark, David & Simpson, Helen, 2015. "Place-Based Policies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1197-1287, Elsevier.

    More about this item

    Keywords

    Housing market; Cournot competition; Third Housing Sector; Indirect effects.;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aop:jijoes:v:11:y:2022:i:2:p:13-27. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jiri Rotschedl (email available below). General contact details of provider: https://ijoes.eurrec.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.