MONOPOLY PRICES IN THE REAL ESTATE MARKET DEVELOPMENT AND WAYS TO ELIMINATE THEM

Abstract

In the real estate market, there are examples of bilateral monopoly in special situations related to the position and the configuration of the property. Typical cases are the trading involving: extra ordinary properties that are taken away from the normal interactions between supply and demand; landlocked funds and/or residual surfaces that get a certain value only if connected to neighboring properties. A model that summarizes the framework within which supply and demand move and interacts is defined, in order to identify a possible break-even point of the respective utilities.