scholarly journals Business diversification and multifaceted markets

2021 ◽  
Author(s):  
Koki Arai ◽  
Shuya Hayashi
Keyword(s):  
Real Estate ◽  
Network Effects ◽  
Financial Data ◽  
Network Effect ◽  
Multiple Perspectives ◽  
Difference In Differences ◽  
The Real Estate ◽  
Indirect Network Effects ◽  
The Difference ◽  
Railroad Company

AbstractIn this paper, we examine multiple segments, conventionally analyzed from the perspective of business diversification, from multiple perspectives in a multifaceted market. Specifically, based on segmental financial data, we conduct an empirical analysis of whether increased sales in the transportation business increase the profit margin of the real estate business of a railroad company. The results show that there are two types of sidedness among many businesses. The effects of both positive and negative indirect network effects were found to exist. In addition, verification of the difference-in-differences based on the initiation event of the mutual traffic interconnection demonstrates the indirect network effect in the transportation business to a certain extent, and shows that the effect is not uniform in each business, with some businesses showing strong effects and others showing less visible effects.

scholarly journals Borders of Network Effects and Early Internationalization as a Latecomer Strategy

2021 ◽  
Author(s):  
Sungyong Chang ◽  
Sanghyun Park
Keyword(s):  
Network Effects ◽  
Theoretical Work ◽  
Order Effect ◽  
Global Market ◽  
Global Strategy ◽  
Network Effect ◽  
Demand Side ◽  
Early Internationalization ◽  
Indirect Network Effects ◽  
Direct Network

Scholars have examined the persistent heterogeneity of firm performance from the entry-order effect perspective. In the international business literature, this perspective has been highlighted in research on early internationalization (i.e., the born global strategy). While prior work has focused on the heterogeneity of firm characteristics and capabilities, we present a demand-side view of early internationalization by focusing on network effects. Prior theoretical work on network effects has predicted that when network effects are prominent, survival is challenging for latecomers because of the installed bases of first movers in the global market. However, we see many cases, such as the mobile instant messenger (MIM) market, where no single winner dominates the global market and where many latecomers have survived by implementing early internationalization. We build upon Brian Arthur’s model of demand-side dynamics. The findings suggest that latecomers may overcome their disadvantages by pursuing early internationalization, especially when the direct network effects (i.e., social network effects) are stronger than the indirect network effects (i.e., installed base effects). The underlying rationale is that country borders often demarcate the reach of the direct network effect, limiting the power of installed bases.

scholarly journals The Valuation of Hope Value for Real Estate Development

2017 ◽  
Vol 25 (2) ◽  
pp. 91-101 ◽  
Author(s):  
Małgorzata Renigier-Biłozor ◽  
Maurizio d’Amato
Keyword(s):  
Real Estate ◽  
Real Option ◽  
Legal Framework ◽  
Real Estate Market ◽  
Small Sample ◽  
The Real Estate ◽  
Real Option Theory ◽  
General Terms ◽  
Real Estate Valuation ◽  
The Difference

Abstract In the valuation of a property subject to development, the valuer may consider the potential aspect of the value of both land to be improved and a building to be refurbished. These kinds of valuations are complex, especially when a prudent assessment of value is required. In general terms, all properties may have potential development which, in some cases, can be termed “hope”. In particular, uncertainty regarding the change in the legal framework may create expectations as to the uncertain variation of property value in the future. In these cases, it may be necessary to deal with hope value or future value, trying to reach the value of a property subjected to uncertain changes. Hope value is the difference between the existing use value and the price that the market might pay for future transformation. The main aim of the paper is the elaboration of a methodology to determine the hope value. In this work, a real option model for the valuation of hope value in the real estate market will be applied to a small sample of residential properties located in Olsztyn that are subject to possible transformation. The possibility of a transformation may create expectations and may influence the value of the property. Although the applications of these methods to real estate valuation are fairly recent, the International Valuation Standards have included real option theory in the income approach as a valuation method since 2011.

scholarly journals Measures of Downside Risk Under Conditions of Downturn in the Real Estate Market

2013 ◽  
Vol 21 (3) ◽  
pp. 81-87 ◽  
Author(s):  
Rafał Wolski
Keyword(s):  
Real Estate ◽  
Risk Measures ◽  
Investment Decisions ◽  
Real Estate Market ◽  
Financial Data ◽  
Total Risk ◽  
Rates Of Return ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market

Abstract Some authors suggest that the use of standard deviation as a measure of total risk for returns on real estate leads to risk overestimation, as the classical Markowitz model does not account for the skewness of financial data, thus making the results unreliable. According to the available literature, risk calculated on the basis of standard semideviation may actually better reflect the nature of property investment. However, in this context, the question of whether or not this measure will lead to risk underestimation at a time of a downturn in the real estate market, resulting in inadequate investment decisions aggravating investor losses arises. Therefore, the present paper presents portfolios constructed using either classical risk measures or measures based on “downside deviations” of rates of return. The results of investment in these portfolios are analyzed.

scholarly journals Equilibrium Analysis for Platform Developers in Two-Sided Market with Backward Compatibility

Games ◽  
2018 ◽  
Vol 9 (4) ◽  
pp. 76
Author(s):  
Dohoon Kim
Keyword(s):  
Network Effects ◽  
Equilibrium Analysis ◽  
Network Effect ◽  
Relative Advantage ◽  
Stable Boundary ◽  
Backward Compatibility ◽  
Indirect Network Effects ◽  
Maximum Price ◽  
Key Factor ◽  
Upper Stage

We consider a dominant platform provider operating both legacy and new platforms that connects users with suppliers in a two-sided market context. In addition to the typical indirect network effects in the two-sided market, backward compatibility works on the new platform. Thus, users joining the new one can also enjoy the services provided by suppliers using the legacy platform. Users and suppliers are linearly differentiated between two platforms as in the Hotelling model and play a subscription game of choosing one platform at the lower level. The suppliers in the new platform may suffer from congestion, which can be alleviated by platform provider’s investment on the new one. The platform provider also determines price margins for the supplier sides. Our equilibrium (eq.) analysis in the subscription game identifies an interior eq. (coexistence of both platforms in both sides). Though the backward compatibility plays a stabilizing role for the interior eq., its stability is fragile due to the network effects. Rather, some boundary eq.’s, where at least one side tips to the legacy or the new platform, are more likely to be stable. The backward compatibility is a key factor that characterizes the stable boundary eq.’s. The upper stage game is led by the platform provider, which tries to maneuver the system toward one of the stable boundary eq.’s using price margins and investment. The platform provider prefers an all-new boundary eq. when the indirect network effect and the maximum price margin for the new platform are large; thus, it puts a significant investment in the new one. With a small indirect network effect for suppliers, however, the platform provider does not invest in the new platform and choose a separate boundary eq. where two sides split into different platforms. Whether the user side completely tips to the new one (completely separated eq.) or not (partially separated eq.) depends on the backward compatibility. The relative advantage of the all-new eq. over the separate eq.’s in terms of social welfare from both sides depends on the backward compatibility as well as the indirect network effects for the new platform.

Research on Prediction of Urumqi City Real Estate Supply and Demand Based on Gray System

2014 ◽  
Vol 1065-1069 ◽  
pp. 2530-2533
Author(s):  
Bi Lin Shao ◽  
Ting Meng ◽  
Wen Juan Liu
Keyword(s):  
Real Estate ◽  
Supply And Demand ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Gray System ◽  
Housing Area ◽  
The Real Estate Market ◽  
Market Situation ◽  
The Difference

This paper takes gray prediction forecasting model as a tool to forecast the real estate market in Urumqi from development and investment, construction housing area and sale of housing area. The difference between the actual value and the predicted prediction value is small, with high accuracy. Predictive value can be reflected in the coming period of the real estate market situation in Urumqi. From the predicted results, we could know that there is a lot potential in Urumqi real estate market in next few years and investment in real estate the construction housing area, housing area of real estate sale will get a larger annual growth. In general, there will be increasing potential in the development of the real estate market in Urumqi. Meanwhile, Urumqi real estate market will tend to rationally develop under the regulation of government in the next few years.

scholarly journals Quantifying Real Estate Externalities: Evidence on the Whole Foods Effect

2020 ◽  
Vol 18 ◽  
pp. 37-46
Author(s):  
Kanis Saengchote
Keyword(s):  
Real Estate ◽  
Local Community ◽  
Statistical Analyses ◽  
Difference In Differences ◽  
Property Prices ◽  
Causal Impact ◽  
The Difference ◽  
Benefits And Costs ◽  
Econometric Technique ◽  
Whole Foods

Real estate amenities can create both benefits and costs to local community, which economists call externalities. Quantification of externalities is challenging because of potential endogeneity problems that render simple statistical analyses inaccurate, necessitating the use of a more rigorous econometric technique. Exploiting store expansion activities of Whole Foods Market to infer the causal impact of the Whole Foods Effect using the difference-in-differences strategy, we find that property prices within 0.5 mile of a new Whole Foods Market store increase on average by 6.7% after a new store opens.

Prawne i merytoryczne aspekty wyceny nieruchomości na potrzeby ustalania opłaty planistycznej

2021 ◽  
pp. 211-236
Author(s):  
Jan Kuryj ◽  
Anna Klimach ◽  
Ryszard Źróbek
Keyword(s):  
Real Estate ◽  
Legal Regulations ◽  
Real Property ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Appraisal ◽  
Property Valuation ◽  
The Difference ◽  
Calculated Difference

The Act of March 27, 2003, on spatial zoning plan and development, regulates establishing zoning plan fees. Thus, the executive bodies of the municipalities have legally created instruments to collect the fee if the conditions outlined in the Act are met. Amendments to this provision resulted in inaccuracies in establishing the fee. The zoning plan fee is established based on the increase in the value of the real property, taking into account two legal statuses. The real estate appraiser confirms the change in the value of the real property in the appraisal report, which constitutes evidence in the proceedings for determining the amount of the zoning fee.In practice, the determination of the zoning plan fee causes many misunderstandings and problems. The main reason for them is the difference in the value of the real property. It becomes the basis for the municipality’s claims against the property owner. Owners (perpetual usufructuaries), in most cases, take action to reduce the calculated difference in value. Most often, they question the correctness of the real estate appraisal and the way it was documented in the appraisal report.The article presents selected charges directed at real estate appraisers concerning the correctness of property valuation for this purpose, with a commentary supported by legal regulations and court rulings (judgments of the Supreme Administrative Court and the Supreme Administrative Court). In the paper, some findings of the Local Government Appeal Colleges are also indicated.

scholarly journals Predictive analytics using Big Data for the real estate market during the COVID-19 pandemic

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Andrius Grybauskas ◽  
Vaida Pilinkienė ◽  
Alina Stundžienė
Keyword(s):  
Big Data ◽  
Real Estate ◽  
Predictive Analytics ◽  
Real Estate Market ◽  
Gradient Boosting ◽  
The Real Estate ◽  
Time On The Market ◽  
Extreme Gradient Boosting ◽  
The Real Estate Market ◽  
The Difference

AbstractAs the COVID-19 pandemic came unexpectedly, many real estate experts claimed that the property values would fall like the 2007 crash. However, this study raises the question of what attributes of an apartment are most likely to influence a price revision during the pandemic. The findings in prior studies have lacked consensus, especially regarding the time-on-the-market variable, which exhibits an omnidirectional effect. However, with the rise of Big Data, this study used a web-scraping algorithm and collected a total of 18,992 property listings in the city of Vilnius during the first wave of the COVID-19 pandemic. Afterwards, 15 different machine learning models were applied to forecast apartment revisions, and the SHAP values for interpretability were used. The findings in this study coincide with the previous literature results, affirming that real estate is quite resilient to pandemics, as the price drops were not as dramatic as first believed. Out of the 15 different models tested, extreme gradient boosting was the most accurate, although the difference was negligible. The retrieved SHAP values conclude that the time-on-the-market variable was by far the most dominant and consistent variable for price revision forecasting. Additionally, the time-on-the-market variable exhibited an inverse U-shaped behaviour.

scholarly journals The legal nature of the relationship for the acquisition of certificates real estate fund

2021 ◽  
pp. 123-127
Author(s):  
O.V. Ilkiv
Keyword(s):  
Real Estate ◽  
The Real ◽  
The Real Estate ◽  
Legal Relationship ◽  
Legal Nature ◽  
The Difference ◽  
The Right ◽  
Investment Process ◽  
The Relationship ◽  
Real Estate Financing

The article analyzes the legal nature of relations and the content of rights that arise on the basis of agreements for the acquisition of certificates of the real estate fund, and in particular the procedure for their implementation. The author considers the nature of the legal relationship, in which the main purpose is for the manager to perform the duties of the trustee with the greatest benefit and in the interests of the holders of certificates of real estate funds. An analysis of the relationship of participation in the real estate fund allows us to conclude that the trust relationship can be transformed into an absolute property right of the manager of the real estate financing fund, and investors (holders of real estate fund certificates) finance the construction.The funds invested in the real estate financing fund are used to finance a specific object. In the further investment process other participants take part, including the developer with whom the owner of the certificate of fund of real estate operations, is not in contractual relations. The owner of the certificates of the real estate fund has the right to require the manager to comply with the restrictions of the right of trust ownership in the process of fund management.The characteristics of the relationship for the acquisition of certificates of the real estate fund, where the basis of the binding relationship is property, is emphasized by differences and commonalities. The difference is that in contrast to property relations, which mostly involve the existence of the object, the moment of their occurrence, the inclusion of the object in the legal relationship is carried out by performing actions that must or may be performed by their participants, or from which you need to refrain.It is concluded that the agreement on the acquisition of FON certificates belongs to the generic type of property management agreements and the application of this agreement in the field of housing construction is due only to the fact that in this way funds are raised for its financing. transfer of ownership of housing.

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