International Journal of Strategic Property Management

Real estate brokerage and endowment effects in the housing market: Evidence from Poland

Mateusz Tomal — 2024-05-17

In the housing market, the prices sellers would be willing to accept to sell their properties exceed the prices buyers would be willing to pay for them. Behavioural economics postulates that this discrepancy is due to the endowment effect, which is a cognitive bias that causes the overvaluation of the goods we own. However, the existing literature lacks theoretical considerations and empirical evidence on the impact of the use of real estate agents by parties to transactions on the endowment effect in the housing market. Therefore, this study aims to assess the influence of real estate brokerage on the endowment effect using the example of the Polish residential market. To achieve the purpose of this study, a lab-in-the-field experiment was conducted with 248 respondents divided into sellers and buyers. The results indicate that the participation of real estate agents during transactions does not lead to the weakening or elimination of the endowment effect but, in some cases, to its intensification, which is due to the framing by buyers and sellers of the commission charged by agents as a loss requiring compensation. This research confirms the inefficiency of commission-based real estate brokerage services and points to possible corrective actions for legislators.

Land supply marketization, economic fluctuations and welfare: A quantitative analysis for China

Yiyao He — 2024-05-17

Land supply in China is planned by governments, and the supply ratios of various types of land are in relatively rigid administrative control. This paper constructs a DSGE model to study the relationship between land supply marketization in China and economic fluctuations. Moreover, this paper evaluates the social welfare gains from land marketization. We document that the government’s land planning constraint impacts consumption and social welfare through the land price and final output, causing resource misallocation losses in aggregate investment and output. Quantitatively, the optimal upper limit of industrial land supply is about 40% to achieve the maximum social welfare. This paper stresses the necessity of revitalizing China’s land market, and simultaneously speeding up the marketization of collectively operated construction land.

The impact of the digital economy on urban house prices: Comprehensive explorations

Shufeng Cong — 2024-05-21

Internet technology and data-driven innovations are changing the way people live and work, which could have an impact on real estate supply and demand. Therefore, this study focuses on the relationship between urban digital economy growth and urban house prices. First, the empirical model shows that the digital economy has an inverted U-shaped impact on urban housing prices. The mechanisms underlying this relationship were then examined. The results indicated that fixed asset investment, government expenditure, and the urban environment influence the relationship between digital economy growth and urban house prices. Finally, a heterogeneity analysis revealed that the digital economy does not affect house prices in Tier 1, New Tier 1, and Tier 2 Chinese cities, but increases house prices in Tier 3 cities. In Tier 4 and Tier 5 cities, this relationship was found to be inverted U-shaped. These findings offer valuable insights to policymakers in China in balancing the growth of the digital economy and the stability of house prices.

Bibliometric review of research on green building assessment method by CiteSpace and HistCite

Yuanyuan Li — 2024-05-23

Numerous qualitative review studies have been conducted to enhance the understanding of current research status of green buildings (GBs). Green building assessment methods (GBAMs) are crucial to the development of GBs and relevant research works has received wide attention. However, there are very few reviews to quantitively explore these studies. Therefore, this paper aims to systematically review literatures on GBAMs, and visually analyzes them through CiteSpace and HistCite. The article identified the most influential journals, contributors, representative institutions and regions. The knowledge bases of this area focus on “triple bottom line”, “indicator”, “building design”, “life cycle costing”, “life cycle sustainability assessment”, “tropical climate”, “building information modelling” and “Chinese green building label”. Through citation analysis, “updating existing GBAMs by scheme comparison”, “updating existing GBAMs by GB case analysis”, “establishment of new GBAMs” and “incorporation of BIM in GBAMs” were found as the main research themes. “Design”, “LCA”, “model”, “energy”, “management”, “residential buildings” and “office buildings” are high-frequency keywords. Future research directions were finally proposed as “more investigation on the other types of GBs”, “incorporation of cost-related criteria”, “enhancing health-related indicators” and“integrating with BIM technology”. The results could provide a useful reference to industry practitioners and scholars interested in GBAMs.

Incentive mechanisms of an experimental resource-sharing platform considering reputation effects for megaprojects

Yuying Wang — 2024-06-12

Participating in megaproject experimental tasks would significantly improve the laboratories’ industry influence and future competitiveness. Thus, this paper introduces the long-term reputation effects of the incentive model of an experimental resource-sharing platform for megaprojects, which could motivate them to consider future benefits and improve their current efforts. The aim is to incentivize laboratories’ resource-sharing behavior more effectively and to increase the amount of resources shared by these laboratories on the platform, thus guaranteeing the long-term sustainability of the platform. It constructs the incentive model by combining dual implicit and explicit incentive mechanisms. It analyses the incentive mechanism of a reputation effect on laboratories compared with the pure explicit mechanism so that the primary conditions for reputation incentives can be obtained to achieve Pareto improvement. Finally, the proposed method is validated in combination with data simulation. The results show that although dual implicit and explicit incentive mechanisms could reduce the information asymmetry between the two sides and increase the efforts of laboratories and the benefits of the platform, the platform should not blindly increase the intensity of these incentives and need to consider the influence of the subsidies of these laboratories’ upfront inputs, the degree of sharing and their informatization capabilities.