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Determination of neighbourhood housing amenities: Asymmetric effects of consumers’ choices and multiple equilibria
Author(s) -
Takahashi Takaaki
Publication year - 2017
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12213
Subject(s) - neighbourhood (mathematics) , economic rent , economics , microeconomics , mathematics , mathematical analysis
This paper studies the sizes and rents of housing determined as a result of the choices of consumers whose utility depends on the level of housing amenities in their neighbourhood. The level is, in turn, determined by the sizes of housing there. It is shown that there emerges a possibility of multiple equilibria if the effect of each consumer's choice upon neighbourhood housing amenities is asymmetric.