2 ms·
Collusion among landlords can only work in a housing shortage. With an abundance of rental units, individual landlords would "defect" (in a game theory sense) a
by nradov 1y ago
Collusion among landlords can only work in a housing shortage. With an abundance of rental units, individual landlords would "defect" (in a game theory sense) and lower rents in order to fill their vacant units at the market price.
- nielsbot 1y agoDon't we have a housing shortage? Also, many (institutional?) landlords are happy to leave units vacant and/or evict tenants spuriously for higher profits.
- tptacek 1y agoExplain the economics of keeping units vacant in the face of increasing supply.
- whoknowsidont 1y agoMaybe read the referenced article?
- diziet_sma 1y agoYes we do. The OP's point is that _if_ there is collusion, building housing will help solve the collusion problem _and_ solve the housing shortage. Spending effort on theoretical collusion which may or may not be happening is a diversion from the real problem, which is lack of housing supply.