Abstract
This paper considers the extent to which the UKhouse building industry is competitive: anarea neglected by the existing housing marketand housing submarket literature. The paperpresents an analysis designed to test thehypothesis that house builders are able todifferentiate or `brand' their output. Statistics on private house building output andthe number of firms in the industry indicatethat it is dominated by large (volume) housebuilders in terms of output share. Theempirical analysis draws on a datasetcomprising 1,155 new housing transactions withphysical attributes and transaction prices forGlasgow between 1989 and 1992. Hedonicregression models are constructed and Chowtests are performed in order to test the nullhypothesis of product homogeneity between housebuilders. The results provide indications thathouse builders differentiate their output sincestatistically significant differences in houseprices that are not related to physical housingcharacteristics are identified.
Sign-in/Register to access full text options 
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.
