Auction Price Formation with Costly Occupants: Evidence Using Data from the Osaka District Court
Foreclosure properties sold at Japanese judicial auctions are delivered to buyers with an unclear title when occupants exist, because the foreclosure laws protect occupants from compulsory execution of auctions. The existence of occupants theoretically affects the auction price through two channels. First, it affects the reserve price, and this changes in auction price. Second, the number of bidders changes in response to changes in the reserve price that is controlled by occupants, and this changes the auction price. Using data from the Osaka District Court, we empirically find that the existence of occupants in properties reduces the auction price through two channels.
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033|
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Toda, Yasushi & Nozdrina, Nadezhda & Maddala, G S, 1998. "The Auction Price of Apartments in Moscow: Hedonic Estimation in Disequilibrium," Economic Change and Restructuring, Springer, vol. 31(1), pages 1-14.
- McAfee, R Preston & Quan, Daniel C & Vincent, Daniel R, 2002. "How to Set Minimum Acceptable Bids, with an Application to Real Estate Auctions," Journal of Industrial Economics, Wiley Blackwell, vol. 50(4), pages 391-416, December.
- Mayer Christopher J., 1995. "A Model of Negotiated Sales Applied to Real Estate Auctions," Journal of Urban Economics, Elsevier, vol. 38(1), pages 1-22, July.
- Joseph T.L. Ooi & C.F. Sirmans & Geoffrey K. Turnbull, 2006. "Price Formation Under Small Numbers Competition: Evidence from Land Auctions in Singapore," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 34(1), pages 51-76, 03.
- Quan, Daniel C, 1994. "Real Estate Auctions: A Survey of Theory and Practice," The Journal of Real Estate Finance and Economics, Springer, vol. 9(1), pages 23-49, July.
- Marcus T. Allen & Judith Swisher, 2000. "An Analysis of the Price Formation Process at a HUD Auction," Journal of Real Estate Research, American Real Estate Society, vol. 20(3), pages 279-298.
- Christopher J. Mayer, 1998. "Assessing the Performance of Real Estate Auctions," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(1), pages 41-66.
- Hajime Tomura, 2007. "Firms Dynamics, Bankruptcy Laws and Total Factor Productivity," Staff Working Papers 07-17, Bank of Canada.
When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2008cf593. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office)
If references are entirely missing, you can add them using this form.