Game Theoretic Analysis of the Feedback Loop Caused by Widely Available Computer Estimation on Market Values

Authors

  • Viorel Silaghi Florida Institute of Technology
  • Zobaida Alssadi Florida Institute of Technology
  • Ben Mathew Florida Institute of Technology
  • Majed Alotaibi Florida Institute of Technology
  • Ali Alqarni Florida Institute of Technology
  • Marius Silaghi Florida Institute of Technology

DOI:

https://doi.org/10.32473/flairs.37.1.135528

Keywords:

Game Theory, agent-based model, Prediction

Abstract

Public availability of computer generated predictions can change the markets and its impact is here investigated with a game theoretic approach.
Real estate inflation is not a new phenomenon but its consistent and almost monotonous persistence over unusually many years, coinciding with new prominence of public estimation information from successful Mass Real Estate Estimators (\MREE{}) already caused various independent research organizations to investigate potential links.
What we model is a repetitive theoretical game between the MREEs and the home owners, where each player has secret information and expertise.
In contrast to competing results, for our model and simulations a restriction of MREE-style price estimation availability to opt-in properties may help partially reduce an inflationary pressure.

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Published

13-05-2024

How to Cite

Silaghi, V., Alssadi, Z., Mathew, B., Alotaibi, M., Alqarni, A., & Silaghi, M. (2024). Game Theoretic Analysis of the Feedback Loop Caused by Widely Available Computer Estimation on Market Values. The International FLAIRS Conference Proceedings, 37(1). https://doi.org/10.32473/flairs.37.1.135528

Issue

Vol. 37 (2024): Vol. 37 (2024): Proceedings of FLAIRS-37

Section

Posters

License

Copyright (c) 2024 Viorel Silaghi, Zobaida Alssadi, Ben Mathew, Majed Alotaibi, Ali Alqarni, Marius Silaghi

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.