Assessing the Performance of Real Estate Auctions
研究了房地产拍卖相对于议价销售的表现，发现拍卖折扣在经济下行时增大，符合理论预测。
This article investigates the performance of real estate auctions relative to negotiated sales. It uses a repeat‐sales methodology to control for unobserved differences in the quality of auction properties. Properties auctioned in Los Angeles during the 1980s boom sold at an estimated discount of 0%–9%, while sales in Dallas following the oil bust obtained discounts of 9%–21%. This evidence is consistent with the theoretical prediction that the auction discount increases in downturns when a seller trades‐off a longer expected selling time in a search market against an immediate auction sale. The study finds no evidence of the declining price anomaly.