Abstract
In the underpriced housing market, each site is sold to an applicant who wins a lottery. Potential buyers have to select a lot maximizing their expected utility level taking into account the subjective probability to win the lottery. A logarithmic form of the subjective probability function best explains the housing lot choice behavior among four models compared. This suggests that potential buyers optimistically overestimate the winning probability. This form is of particular interest, for it mathematically coincides with logit models except for the hypethesized error term distribution.
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 callMore From: Journal of Architecture and Planning (Transactions of AIJ)
Disclaimer: 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.
