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How to efficiently allocate houses under price controls?

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  • Andersson, Tommy
  • Yang, Zaifu
  • Zhang, Dongmo

Abstract

We examine a housing market with price controls and show how the allocation problem can be solved through a price system. We demonstrate that the auction of Talman and Yang (2008) always generates a core allocation, thus resulting in a Pareto efficient and stable outcome.

Suggested Citation

  • Andersson, Tommy & Yang, Zaifu & Zhang, Dongmo, 2015. "How to efficiently allocate houses under price controls?," Economics Letters, Elsevier, vol. 130(C), pages 97-99.
    • Handle: RePEc:eee:ecolet:v:130:y:2015:i:c:p:97-99
    DOI: 10.1016/j.econlet.2015.03.013
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    Cited by:

    1. Zhou, Yu, 2017. "A multi-item auction with budget-constrained bidders and price controls," Economics Letters, Elsevier, vol. 155(C), pages 76-79.
    2. Gerard van der Laan & Zaifu Yang, 2016. "An ascending multi-item auction with financially constrained bidders," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 1(1), pages 109-149, December.
    3. Zhan Wang & Jinpeng Ma & Hongwei Zhang, 2023. "Object-based unawareness: Theory and applications," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 8(1), pages 1-55, December.
    4. Andersson, Tommy & Svensson, Lars-Gunnar, 2016. "Strategy-proof house allocation with price restrictions," Journal of Economic Theory, Elsevier, vol. 163(C), pages 167-177.

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    More about this item

    Keywords

    Ascending auction; Price controls; Core; Pareto efficiency;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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