Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model

This study applies the two-tier stochastic frontier model to estimate the distribution of housing transaction information in Hangzhou, Wenzhou, Ningbo, and Jinhua (four cities in Zhejiang Province, China) during the year 2018, to analyze the difference in the price information acquired by the buyers...

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Main Authors: PU, Ganlin, ZHANG, Ying, CHOU, Li-Chen
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Language:English
Published: Institutional Knowledge at Singapore Management University 2022
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Online Access:https://ink.library.smu.edu.sg/sis_research/6951
https://ink.library.smu.edu.sg/context/sis_research/article/7954/viewcontent/EstimatingFIS_RealEstate_China_av.pdf
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spelling sg-smu-ink.sis_research-79542023-03-31T09:20:58Z Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model PU, Ganlin ZHANG, Ying CHOU, Li-Chen This study applies the two-tier stochastic frontier model to estimate the distribution of housing transaction information in Hangzhou, Wenzhou, Ningbo, and Jinhua (four cities in Zhejiang Province, China) during the year 2018, to analyze the difference in the price information acquired by the buyers and sellers in the transaction, and the effect of information asymmetry on the transaction price. The empirical results show that in each city, during the housing transaction process, the supplier has more complete information about house prices than consumers, and can therefore implement price discrimination strategies in setting service prices. Due to the disadvantage in acquired information, consumers on average need to pay a price 4.86% higher than a reasonable transaction price. In addition, the information asymmetry problem in urban areas is relatively more serious than in other areas. In terms of comparisons between cities, Hangzhou had the largest net surplus in the housing transaction market, followed by Jinhua, Ningbo, and Wenzhou. 2022-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/6951 info:doi/10.1016/j.ipm.2021.102860 https://ink.library.smu.edu.sg/context/sis_research/article/7954/viewcontent/EstimatingFIS_RealEstate_China_av.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University A two-tier frontier model China Housing price Information asymmetry Asian Studies Numerical Analysis and Scientific Computing Real Estate
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic A two-tier frontier model
China
Housing price
Information asymmetry
Asian Studies
Numerical Analysis and Scientific Computing
Real Estate
spellingShingle A two-tier frontier model
China
Housing price
Information asymmetry
Asian Studies
Numerical Analysis and Scientific Computing
Real Estate
PU, Ganlin
ZHANG, Ying
CHOU, Li-Chen
Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
description This study applies the two-tier stochastic frontier model to estimate the distribution of housing transaction information in Hangzhou, Wenzhou, Ningbo, and Jinhua (four cities in Zhejiang Province, China) during the year 2018, to analyze the difference in the price information acquired by the buyers and sellers in the transaction, and the effect of information asymmetry on the transaction price. The empirical results show that in each city, during the housing transaction process, the supplier has more complete information about house prices than consumers, and can therefore implement price discrimination strategies in setting service prices. Due to the disadvantage in acquired information, consumers on average need to pay a price 4.86% higher than a reasonable transaction price. In addition, the information asymmetry problem in urban areas is relatively more serious than in other areas. In terms of comparisons between cities, Hangzhou had the largest net surplus in the housing transaction market, followed by Jinhua, Ningbo, and Wenzhou.
format text
author PU, Ganlin
ZHANG, Ying
CHOU, Li-Chen
author_facet PU, Ganlin
ZHANG, Ying
CHOU, Li-Chen
author_sort PU, Ganlin
title Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
title_short Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
title_full Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
title_fullStr Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
title_full_unstemmed Estimating financial information asymmetry in real estate transactions in China: An application of two-tier frontier model
title_sort estimating financial information asymmetry in real estate transactions in china: an application of two-tier frontier model
publisher Institutional Knowledge at Singapore Management University
publishDate 2022
url https://ink.library.smu.edu.sg/sis_research/6951
https://ink.library.smu.edu.sg/context/sis_research/article/7954/viewcontent/EstimatingFIS_RealEstate_China_av.pdf
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