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Door-in-the-face heuristics: Intermediaries’ diversion in rental markets
Department of Building and Real Estate, The Hong Kong Polytechnic University.
Tsinghua Hang Lung Center for Real Estate Studies, Institute of Real Estate Studies, Department of Construction Management, Tsinghua University, Beijing, China.
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management.ORCID iD: 0000-0001-5365-5690
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper investigates how intermediaries with information advantages divert consumer search in rental markets and lead to inefficient outcomes. Using unique data on tenants’ initial preferences and property-visit records, we find that intermediaries deliberately prioritize the exhibition of properties distant from tenants’ preferences in their property-showing sequences and divert the visit route toward unsolicited properties. Moreover, such diversion patterns are dynamically adjusted according to the instantaneous feedback from tenants. By using diversion strategies to affect and project consumers’ preferences and willingness to pay, intermediaries can benefit from two channels, i.e., 1) distorting transaction outcomes and achieving higher commissions and 2) facilitating deals for less-favorable properties. We also provide evidence for the successive approximations of intermediaries’ diversion strategies and their implications for tenant discrimination.

Keywords [en]
search diversion; agent; property showing; rental markets
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-343230OAI: oai:DiVA.org:kth-343230DiVA, id: diva2:1836459
Available from: 2024-02-09 Created: 2024-02-09 Last updated: 2024-02-09Bibliographically approved

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fulltext(875 kB)128 downloads
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Yang, Zan

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf