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Transferring ownership of public housing to existing tenants: A market design approach

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  • Andersson, Tommy
  • Ehlers, Lars
  • Svensson, Lars-Gunnar

Abstract

This paper explores a housing market with an existing tenant in each house and where the existing tenants initially rent their houses. The idea is to identify equilibrium prices for the housing market given the prerequisite that a tenant can buy any house on the housing market, including the one that he is currently possessing, or continue renting the house he is currently occupying. The main contribution is the identification of an individually rational, equilibrium selecting, and group non-manipulable price mechanism in a restricted preference domain that contains almost all preference profiles. In this restricted domain, the identified mechanism is the minimum price equilibrium selecting mechanism that transfers the maximum number of ownerships to the existing tenants. We also relate the theoretical model and the main findings to the U.K. Housing Act 1980 whose main objective is to transfer ownerships of houses to existing tenants.

Suggested Citation

  • Andersson, Tommy & Ehlers, Lars & Svensson, Lars-Gunnar, 2016. "Transferring ownership of public housing to existing tenants: A market design approach," Journal of Economic Theory, Elsevier, vol. 165(C), pages 643-671.
  • Handle: RePEc:eee:jetheo:v:165:y:2016:i:c:p:643-671
    DOI: 10.1016/j.jet.2016.07.004
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    References listed on IDEAS

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    Cited by:

    1. Yu Zhou & Shigehiro Serizawa, 2016. "Strategy-Proofness and Efficiency for Non-quasi-linear Common-Tiered-Object Preferences: Characterization of Minimum Price Rule," ISER Discussion Paper 0971, Institute of Social and Economic Research, Osaka University.
    2. Tomoya Kazumura & Shigehiro Serizawa, 2016. "Efficiency and strategy-proofness in object assignment problems with multi-demand preferences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(3), pages 633-663, October.
    3. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object auction design: Ex-post revenue maximization with no wastage," ISER Discussion Paper 1001, Institute of Social and Economic Research, Osaka University.
    4. Tomoya Kazumura & Debasis Mishra & Shigehiro Serizawa, 2017. "Strategy-proof multi-object allocation: Ex-post revenue maximization with no wastage," Working Papers e116, Tokyo Center for Economic Research.

    More about this item

    Keywords

    Existing tenants; Equilibrium; Minimum equilibrium prices; Maximum trade; Group non-manipulability;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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