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

Listed author(s):
  • Andersson, Tommy
  • Ehlers, Lars
  • Svensson, Lars-Gunnar

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.

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File URL: http://www.sciencedirect.com/science/article/pii/S0022053116300461
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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 165 (2016)
Issue (Month): C ()
Pages: 643-671

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Handle: RePEc:eee:jetheo:v:165:y:2016:i:c:p:643-671
DOI: 10.1016/j.jet.2016.07.004
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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  16. ANDERSSON, Tommy & EHLERS, Lars & LARS-GUNNAR, Svensson, 2014. "Transferring ownership of public housing to existing tenants: a mechanism design," Cahiers de recherche 2014-05, Universite de Montreal, Departement de sciences economiques.
  17. Tommy ANDERSSON & Lars EHLERS & Lars-Gunnar SVENSSON, 2014. "Transferring Ownership of Public Housing to Existing Tenants : A Mechanism Design Approach," Cahiers de recherche 09-2014, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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