2 ms·

That model assumes that there's only one owner and that identical units have identical rents.

• Maxious 3y ago
  ... as is the situation in many real world apartment blocks
  • uoaei 3y ago
    Hardly. Identical layouts maybe, but part of the property owner's advantage is exploiting asymmetric information and charging each tenant what they're willing to pay, not just what the other tenants already pay. (This is one reason why talking to your neighbors is important.)
    • DeathArrow 3y ago
      To add to what the previous commenter said, It's wrong to imagine the market as one big block apartment building.