ECONOMIC AGENT BEHAVIOR ON REAL ESTATE MARKET

Oana CHINDRIŞ-VĂSIOIU

Abstract


Traditional theory of the consumer explains development of demand through changes in prices and income. Consumer tastes and preferences are considered to be constant, stable, therefore does not take account of them in explaining market participants behavior. Indeed, from scientific point of view, can only be explained a behavior by a hypothesis relating to individual tastes or preferences since it would be impossible to subject to such a hypothesis to the test of facts.

If your preferences are stable, how we interpret fast transformation of modes of consumption? The increase of income can explain an increase in volume for consumption, but not the changes in its structure. At the limit, relative prices could explain budget allocation between existing goods and services, but not the incessant occurrence of new goods and services, which they come to satisfy what current language means that new needs.


Keywords


real estate market, hedonic price, demand, supply, market equilibrium.

References


Abraham-Frois G. (1998) Economie politică, Ediţia a II-a, Editura Humanitas, Bucureşti, p.210

Bentham J. (1907)An Introduction to the Principles of Moral sand Legislation, Publisher Oxford: Clarendon Press, (reprint of 1823 edition, first printed 1780), p.33

Cătoiu I., Teodorescu, N. (2004) Comportamentul consumatorului, Editia a II-a, Editura Uranus, Bucureşti, p.24

Colwell P.F., Cannaday R.E., Wu C. (1983) The Analytical Foundations of Adjustment Grid Methods, Journal of American Real Estate and Urban Economics Association, no. 11, pp.12-14

Copaciu M. (2013), Model de echilibru general deinamic pentru economiile emergente, Editura ASE, Bucuresti, p. 16

Epple D. (1987) Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products, Journal of Political Economy, 22(1), pp.59-80

Généreux J. (2000) Economie politică. Microeconomie, Editura All Beck, Bucureşti, p.198

Lancaster K.J. (1966) New Approach to Consumer Theory, Journal of Political Economy, no.74 , pp.15-16

McConnel K.E., Phipps T.T. (1987) Identification of Preference Parameters in Hedonic Models: Consumer Demands within Online Budgets, Journal of Urban Economics, 22(1), pp.33-52

Palmquist R.B. (1991) Hedonic Methods, in Braden J.B. and Kolstad C.D., eds., Measuring the Demand for Environmental Quality, Elsevier Science, Amsterdam, pp.77-120

Pecican E.Ş. (2006) Econometrie, Ediţia a II-a, Editura C.H.Beck, Bucureşti, p. 34

Peter J., Olson J. (2003) Consumer Behavior and Marketing Strategy , McGraw-Hill, London, p. 65

Rosen S. (1974) Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition, Journal of Political Economy, no. 82, pp.12-23

Stiglitz J.E., Walsh C.E. (2005), Economie, Editura Economică, Bucureşti, pp.123-127

Tocan M.C. (2011) Economie - noţiuni fundamentale şi aplicaţii practice, Editura Bren, Bucureşti, pp.70-71


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.