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As noted elsewhere in the thread, that simplified model assumes all the units must have the same price.
by JoshTriplett 3y ago
As noted elsewhere in the thread, that simplified model assumes all the units must have the same price.
- Qwertious 3y agoNo it doesn't. It assumes some of the units have correlated prices, because units are, to some extent, fungible - if there are no one-bedroom apartments in the price range, then you'll drive up the price of pricier two-bedroom apartments due to the increased competition.
- richbell 3y agoIt isn't just a hypothetical. Landlords use companies like RealPage to collude on pricing and keep units vacant.
- JoshTriplett 3y agoI wasn't suggesting that the net result was false, just that the model suggested in the comment I was replying to wasn't accurate, because landlords do sell the same model of apartment to different people at different prices based on when their lease started.