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Further Assessment of the Efficiency Effects of Internet Use in Home Search

Author

Listed:
  • Heather Richardson

    () (University of Alabama)

  • Leonard V. Zumpano

    () (The University of Alabama)

Abstract

This paper examines the continuing evolution of the Internet and the resulting effects on the efficiency of buyer search. The study encompassed market conditions indicative of both a buyer's and seller's market. The results indicate that as Internet usage increased search duration increased, whether a buyer's or seller's market. This result was different from earlier research which found that the Internet had no significant effect on search duration, even though it increased search intensity. In contrast, while this research also found the Internet increased buyer search intensity, it only did so when market conditions are more favorable to buyers, and not during seller's markets. If the only effect of online search is an increase in search duration without a commensurate increase in benefits to buyers the Internet may actually slow the market clearing process and increase seller holding costs.

Suggested Citation

  • Heather Richardson & Leonard V. Zumpano, 2012. "Further Assessment of the Efficiency Effects of Internet Use in Home Search," Journal of Real Estate Research, American Real Estate Society, vol. 34(4), pages 515-548.
  • Handle: RePEc:jre:issued:v:34:n:4:2012:p:515-548
    as

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    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol34n04/03.515_548.pdf
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    References listed on IDEAS

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    1. Downs, David H. & G√ľner, Nuray Z. & Hartzell, David J. & Torres, Michael A., 2001. "Why Do REIT Prices Change? The Information Content of Barron's "The Ground Floor."," The Journal of Real Estate Finance and Economics, Springer, pages 63-80.
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    5. anonymous, 2000. "Supply, demand and deadlines," The Region, Federal Reserve Bank of Minneapolis, pages 5-7.
    6. Zhilan Feng & Chinmoy Ghosh & C. Sirmans, 2007. "On the Capital Structure of Real Estate Investment Trusts (REITs)," The Journal of Real Estate Finance and Economics, Springer, pages 81-105.
    7. Chen, Nai-Fu & Roll, Richard & Ross, Stephen A, 1986. "Economic Forces and the Stock Market," The Journal of Business, University of Chicago Press, vol. 59(3), pages 383-403, July.
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    Cited by:

    1. Carvalho, Vasco M & Grassi, Basile, 2015. "Large Firm Dynamics and the Business Cycle," CEPR Discussion Papers 10587, C.E.P.R. Discussion Papers.
    2. repec:aea:aecrev:v:107:y:2017:i:7:p:2007-40 is not listed on IDEAS
    3. Vladimir Asriyan & William Fuchs & Brett Green, 2017. "Information Spillovers in Asset Markets with Correlated Values," American Economic Review, American Economic Association, pages 2007-2040.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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