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The Housing Market Impact of State-Level Anti-Discrimination Laws 1960-1970

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  • William J. Collins

    (Department of Economics, Vanderbilt University)

Abstract

In this paper, we study the incentives for market concentration of (online and traditional) auction houses. Would sellers and buyers be better off if two separate auction houses merged? We suppose that each auction house has a separate clientele of sellers and buyers. Sellers value their (identical) units at 0, while buyers have independent private values. Each auction house uses an ascending auction or by revenue equivalence any auction mechanism that allocates units efficiently among those buyers at that auction house. If no buyers are lost upon the merger, we find that efficiency gains increase, but that the expected sellers' revenue increases by more than the efficiency gains, leaving the buyers worse off. This result extends Bulow and Klemperer's (1996) insight that the competition of an additional bidder increases auction revenue by more than the ability to commit to an optimal auction with one less bidder; in our model, the extra competition created by having all of the bidders bid against each other after the merger more than offsets any supply effects. With an example, we show that if buyers choose whether to participate or not, it is possible upon a merger that so many buyers are lost, the sellers are actually worse off. We conclude that without transfers from sellers to buyers, the merger may or may not be profitable for sellers.

Suggested Citation

  • William J. Collins, 2003. "The Housing Market Impact of State-Level Anti-Discrimination Laws 1960-1970," Vanderbilt University Department of Economics Working Papers 0304, Vanderbilt University Department of Economics.
  • Handle: RePEc:van:wpaper:0304
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    References listed on IDEAS

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    Cited by:

    1. Collins, William J., 2021. "The Great Migration of Black Americans from the US South: A guide and interpretation," Explorations in Economic History, Elsevier, vol. 80(C).
    2. Hatch, M.E., 2021. "Voluntary, forced, and induced renter mobility: The influence of state policies," Journal of Housing Economics, Elsevier, vol. 51(C).
    3. Chatterji, Aaron K. & Seamans, Robert C., 2012. "Entrepreneurial finance, credit cards, and race," Journal of Financial Economics, Elsevier, vol. 106(1), pages 182-195.
    4. Boring, Anne & Philippe, Arnaud, 2021. "Reducing discrimination in the field: Evidence from an awareness raising intervention targeting gender biases in student evaluations of teaching," Journal of Public Economics, Elsevier, vol. 193(C).
    5. Ọláyínká Oyèkọ́lá, 2021. "Finance and inequality in a panel of US States," Empirical Economics, Springer, vol. 61(5), pages 2739-2795, November.
    6. Leah Platt Boustan, 2013. "Racial Residential Segregation in American Cities," NBER Working Papers 19045, National Bureau of Economic Research, Inc.
    7. Leah Platt Boustan & Robert A. Margo, 2011. "White Suburbanization and African-American Home Ownership, 1940-1980," NBER Working Papers 16702, National Bureau of Economic Research, Inc.
    8. Yana Kucheva & Richard Sander, 2016. "Black Pioneers, Intermetropolitan Movers, and Housing Desegregation," Working Papers 16-23, Center for Economic Studies, U.S. Census Bureau.
    9. Boustan, Leah P. & Margo, Robert A., 2013. "A silver lining to white flight? White suburbanization and African–American homeownership, 1940–1980," Journal of Urban Economics, Elsevier, vol. 78(C), pages 71-80.

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    More about this item

    Keywords

    Fair housing; residential segregation;

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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