A study of conditional bids in the bidding process – from a perspective of a bidder
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
En studie av villkorade bud i budgivningsproc essen – ur en budgivares perspektiv (Swedish)
The law does not regulate the bidding process; it’s the seller who, in consultation with the estate agent, decides the rules. If the estate agent does not inform all the bidders about conditions attached to the bids,it means that a bidder bid against something he s not fully informed about.
This means that the lack of transparency in the bidding process leads to asymmetric information between the bidders and this could be detrimental to a bidder and for the benefit of another.
This paper has been written in order to investigate how consumers and the housing market is
Affected by the law not regulating the estate agent to inform all the bidders of conditions attached
To the bids.
Previously nothing has been written on this subject, which means that this paper is of an explorative--‐ and investigative character. Since there was no access to any secondary data in this study, the major part of the work was to collect primary data.
The collection of data consisted of a survey to estate agents, a survey/interview to uyers/speculators
And interviews with a number of individuals with special expertise in the subject.
The investigations carried out, resulted in a discussion and analysis of how consumers are affected by
The estate agent not having to provide information about conditional bids to all bidders.
The answers in interviews is not conclusive, there are both pros and cons of not having the bidding
Process regulated by law. The conclusion also includes a discussion on how housing prices can be affected by the bidding not being regulated by law regarding conditions.
This conclusion is that the prices could both increase and decrease by a regulation of the bidding process, depending on the scenario.
Place, publisher, year, edition, pages
2016. , 61 p.
Bidding, Asymmetric information, Conditional bids, Transparency, Bid rigging
Budgivning, Asymmetrisk information, Villkorade bud, Transparens, Falska bud
Engineering and Technology
IdentifiersURN: urn:nbn:se:kth:diva-190106Archive number: 376OAI: oai:DiVA.org:kth-190106DiVA: diva2:951400