scholarly journals The Economic Role and Emergence of Professional Valuers in Real Estate Markets

Land ◽  
2021 ◽  
Vol 10 (7) ◽  
pp. 683
Author(s):  
Stephan Bartke ◽  
Reimund Schwarze
Keyword(s):  
Real Estate ◽  
Imperfect Information ◽  
Institutional Economics ◽  
Market Value ◽  
Professional Associations ◽  
New Institutional Economics ◽  
Conceptual Integration ◽  
Real Estate Markets ◽  
Economic Role ◽  
Informal Regulation

Land is a scarce resource. It is usually traded as real estate, an economic good with a market value. Often, this market value is not negotiated simply between the seller and the potential buyer, but is based on an assessment performed by a professional valuer, known as a surveyor or appraiser. This article questions the economic role and the emergence of valuers in real estate markets. An institutionally embedded framework for valuation intermediation is developed that elucidates a multi-tiered imperfect information cascade. First, valuers are understood as middlemen, counteracting information uncertainties regarding product quality, namely real estate herein. An additional constraint is constituted by information asymmetries between the valuer and the contractor. The contribution presents a conceptual integration of theories of price formation (and regulation) and theories of intermediation. Investigating new institutional economics concepts considering the emergence of professional associations and the specific formal and informal regulation of nature-related transactions, the contribution then discusses how the valuation professional with regularizations evolves as a superior institutional response to this cascade of information imperfections.

scholarly journals Creating Values for Sustainability: Stakeholders Engagement, Incentive Alignment, and Value Currency

2012 ◽  
Vol 2012 ◽  
pp. 1-9 ◽  
Author(s):  
Frank T. Lorne ◽  
Petra Dilling
Keyword(s):  
Value Creation ◽  
Institutional Economics ◽  
Evaluation Method ◽  
Evolutionary Process ◽  
New Institutional Economics ◽  
Incentive Alignment ◽  
Economic Role ◽  
Shareholder Theory ◽  
The Difference

A shareholder theory of firm and a stakeholder theory of firm may differ in their respective evaluation method of firm performance. Both theories however recognize the importance of value creation as the economic role of firms as institutions. The New Institutional Economics (NIE) emphasizes incentives alignment, while also viewing stakeholder engagements as methods to expand the boundaries of firms. The difference in performance evaluation between the two approaches can be reduced if stakeholders, while formulating incentive alignment, also evaluate the mechanisms of establishing a common currency value. The concomitant development of stakeholder engagement, incentive alignment, and value currency creation is argued to be an evolutionary process with the efficiency implications of the two theories tending to converge.

Neoclassical economics and new institutional economics

2015 ◽  
Vol 33 (5) ◽  
pp. 412-429 ◽  
Author(s):  
Alirat Olayinka Agboola
Keyword(s):  
Real Estate ◽  
Design Methodology ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
Economic Thought ◽  
Neoclassical Economics ◽  
Property Market ◽  
Content Type ◽  
Representative Study ◽  
Philosophical Orientations

Purpose – The purpose of this paper is to examine the provisions of both the neoclassical economics and new institutional economics theses and assesses the implications of their methodologies for property market analysis. Design/methodology/approach – This research is based on secondary literature review and desk-based study. Findings – It is argued that new institutional economics, grounded on firmer foundations of human behaviour, offers an analytical approach to the study of the property market which emphasizes the institutionally contingent nature of real estate exchange, thus placing real estate within its socio-economic context. Originality/value – In-depth examination and juxtaposition of the provisions, assumptions, philosophical orientations and limitations of these main traditions of economic thought towards the achievement of a representative study of the workings of the property market.

scholarly journals The Impact of Airbnb Platforms on the Romanian Real Estate Market

2019 ◽  
Vol 76 (2) ◽  
pp. 245
Author(s):  
Daniela RĂBOJ
Keyword(s):  
Real Estate ◽  
Market Value ◽  
Real Estate Market ◽  
Online Research ◽  
Direct Impact ◽  
Real Estate Markets ◽  
State Institutions ◽  
Residential Properties ◽  
Empirical Perspective ◽  
The Impact

Airbnb or other similar platforms have evolved greatly in recent years and managed to change the perception of accommodation, in the same manner as Uber has changed the perception of public transport. Renting for tourism purposes, through Airbnb type platforms, has a direct impact on investors, state institutions, real estate markets and so on. The purpose of this paper is to analyze the effect of Airbnb type platforms on the Romanian real estate market and to describe the difficulties encountered in evaluating the properties that produce hotel rental income. These analyzes are intended in order to highlight an empirical perspective on this trend. The study consisted of a thorough online research, that took also into consideration legislation in force. In this paper I have presented a series of assessments of the impact on the market value of residential properties in Romania, which the properties listed for rent on Airbnb, seem to have.

Vertical Restrictions: Development of Theory, Antitrust Legislation and Enforcement

2010 ◽  
pp. 110-122 ◽  
Author(s):  
S. Avdasheva ◽  
N. Dzagurova
Keyword(s):  
Institutional Theory ◽  
Institutional Economics ◽  
Theory Of The Firm ◽  
New Institutional Economics ◽  
Hierarchical Organization ◽  
Vertical Restraints ◽  
New Institutional Theory ◽  
Antitrust Laws ◽  
Antitrust Legislation ◽  
Market Organization

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.

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