Research Summary
Research Summary
Housing Markets with Contingencies
Description
We model a real-estate market with three types of agents: regular buyers and sellers, and homeowners, who are agents who want to sell their current home only if they can buy another one. On the one hand, our model is a counterpart of the Abdulkadiroglu and Sonmez (1999) model of housing with existing tenants, where money is available as a means of transferable utility and each agents preferences can be expressed in monetary terms. On the other hand, our model generalizes the Shapley-Shubik (1972) assignment model by relaxing its assumption of asymmetry of preferences of sellers and buyers. We investigate the existence and construction of a competitive equilibrium for this model.