Year-end Sale % OFF 
Abstract
The paper presents a continuous-time dynamic model of a neighborhood in racial transition as triggered by a fee-motivated real estate broker. Racial transition occurs in an initially all-white neighborhood when the broker steers white sellers towards black buyers. Racial transition leads to a higher turnover in the neighborhood, but also leads to lower prices. Thus the broker faces a trade-off between higher turnover and lower prices. We show that racial transition will occur only when (i) white households have moderate racial preferences, (ii) the value of housing outside the neighborhood for black households is low, (ii) the broker is moderately patient, (iii) the rate of arrival of offers is moderate, (iv) the number of brokers is limited. Otherwise, the real estate broker steers white households towards white buyers.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
