Urban congestion and developer precommitments: unilateral solutions to dynamic inconsistency

Auteur :
RICHER, J.

Description :
The sale of housing creates a dynamic inconsistency problem for residential developers, who find it profit-maximising to overdevelop an area once ownership has been transferred to local residents. Rational buyers lower the prices they are willing to pay in expectation of this future congestion. It is therefore in the developers'interest to attract higher prices by credibly precommitting themselves to construction plans that are optimal for each housing tract.


Type de document :
Article de périodique

Source :
Urban studies (Harlow), issn : 0042-0980, 1995, vol. 32, n°. 8, p. 1279-1291, Collation : Illustration, Références bibliographiques : 15 ref.

Date :
1995

Editeur :
Pays édition : Royaume-Uni, Harlow, Longman Group