A Quantitative Analysis for House Price Target of Real Estate Control Policy in China
A new set of real estate control policies have been carrying out to inhibit soaring house price and deal volume is going down rapidly. Not only customer and real estate firms are all care about the house price target, but also it is an important index for government to adjust their policies. Taking into account that customer is the weaker side comparing with real estate firms, we can conclude that customer will buy a house on the price equaling to their expected value for the house once the control policies have all done. Then we will give a new interpretation to Myerson and Satterthwaite’s model in order to do quantitative analysis on house price. Finally we will know that government should only take some care not to make the lower limit of expected value range below the upper limit of costs range, otherwise house price must follow the analytic result to maximize society remain when deal volume reach appropriate level.
KeywordsPrincipal-agent theory Control policy House price Adjustment target
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