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Effects of Buyer Demand Information Transmission on Housing Search: An Experimental Study
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    Abstract:

    The experimental economics method was utilized to examine the effects of buyer demand information transmission on the results and process of housing search. Firstly, based on the asymmetric information theory and the multi-attribute reverse auction theory, two hypotheses with reference to the effects of buyer demand information transmission on the result and process of housing search were proposed for test. Secondly, according to the characteristics of actual housing search process, three treatment housing search experiments were designed and conducted in laboratory. Thirdly, utilizing the experimental data, nonparametric tests were implemented for the best of two hypotheses. The findings indicated that the match degree has positive correlation with the buyer demand information transmission while the attribute competition has negative correlation with the amount of buyer demand information transmission. Besides, there is no significant effect of buyer demand information transmission on the buyer's earnings, the broker's earnings, the search duration and the price competition. In conclusion, the transmission of buyer demand information can help buyers to search more suitable houses without negative effects on the search results.

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