Buyers' and sellers' agents in the housing market

Buyers' and Sellers' Agents in the Housing Market

We explain why buyers in the housing market use an agent employed by the seller. Such agents reduce buyers' search costs so that more buyers search a particular house. This increases the probability of the sale of the house and possibly also its selling price. However, since the selling price increases, if at all, by less than the fee paid by the seller to the agent, both buyers and sellers are...

Sellers Competing for Buyers in Online Markets

We consider competition between sellers offering similar items in concurrent online auctions, where each seller must set its individual auction parameters (such as the reserve price) in such a way as to attract buyers. We show that there exists a pure Nash equilibrium in the case of two sellers with asymmetric production costs. In addition, we show that, rather than setting a reserve price, a s...

Buyers Versus Sellers: How They Differ in Their Responses to Framed Outcomes BUYERS VERSUS SELLERS MONGA AND ZHU

Consumers’ reactions to a difference in price can depend on how it is framed. If buyers interpret paying $60 rather than $65 as getting a $5 discount, then they are likely to consider paying $60 to be a gain and paying $65 to be a nongain. Alternatively, if they interpret having to pay $65 rather than $60 as incurring a $5 penalty, then they may consider paying $60 to be a nonloss and paying $6...

Asymmetric Generosity but Not Agreement in Buyers’ and Sellers’ Offers

Equilibrium in Prediction Markets with Buyers and Sellers

Prediction markets with buyers and sellers of contracts on multiple outcomes are shown to have unique equilibrium prices, which can be computed in polynomial time.