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This paper analyzes how the competition among real estate brokers impacts housing prices in a typical sellers’ market in China. In a theoretical model, we discover a broker competition mechanism in which brokers compete for listings by promising higher transaction prices and compete for buyers...
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This paper establishes a general model to explore the mechanism through which bank competition affects real estate market and consumer welfare. The model combines three sections, including a representative consumer, an oligopoly real estate industry, and a banking industry. It predicts that...
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This paper studies the interplay between asset bubbles and product market competition. It offers two main insights. The … rational bubbles possible even when there is no overaccumulation of capital. The second is that when providing a production … subsidy, bubbles stimulate competition and reduce monopoly rents. I show that bubbles can destroy efficient investment and …
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