Simulation Analysis of Buyer Searching Process in China’s Primary Housing Market

Abstract

Study on buyer searching process in housing market has been the hot academic topic in the field of information economics. Based on the realities of China’s housing market, this paper builds a model for buyer searching process in the primary housing market, investigates buyers’ optimal searching decisions and the influences of exogenous variables on the searching process with the analog simulation method, so as to discuss the formation mechanism and influencing factors of the housing searching process. The results are that the price difference degree of housing with similar qualities is the main factor affects buyers’ searching decisions and the increase of price difference will lead to negative searching strategies. However, the increase of buyers’ income will promote their searching efforts and induce active searching strategies. Suggestions of reducing the price difference degree of housing with similar qualities; expanding information transmission channels and improving the transparency and authenticity of information are proposed.