Category: Innovations

The ratchet games: Part 3, How many times?

9 May, 2014 (09:00) | Auctions, Brokers, escalation clause, Homeownership, Innovations, Markets, principal-agent risk, realtors, sales, US News |

[Continued from yesterday's Part 2 and the preceding part 1.] By: David A. Smith By now it’s evident that the escalation clause in a home-purchase offer, described by Jay Fitzgerald in a good piece for the Boston Globe (April 13, 2014), is at best a double-edged sword for sellers and buyers, opening a new subgame […]

The ratchet games: Part 2, Promising to top?

8 May, 2014 (09:00) | Auctions, Brokers, escalation clause, Homeownership, Innovations, Markets, principal-agent risk, realtors, sales, US News |

[Continued from yesterday's Part 1.] By: David A. Smith Yesterday Part 1 used a Boston Globe (April 13, 2014) article by Jay Fitzgerald to report on an innovation by eager home buyers to gain an advantage over other home buyers: the escalation clause, where a bidder proposes being given a ‘last-best-topper’ right to top any […]

The ratchet games: Part 1, An escalating edge?

7 May, 2014 (09:00) | Auctions, Brokers, escalation clause, Homeownership, Innovations, Markets, principal-agent risk, realtors, sales |

By: David A. Smith Though markets are places where eventually the trade shows the truth about what people value, the pre-sale maneuvering is a game without rules, where anything goes – so there is no one right way to sell an item, and no one right way to buy it, and when the balance of […]

And if requiring fail? Part 2, is stronger than its execution

21 March, 2014 (09:00) | Affordability, Affordable Housing, de Blasio, Development, Housing, Inclusionary zoning, Innovations, New York City, Theory, US News |

[Continued from yesterday's Part 1.]   By:David A. Smith   Yesterday we saw that during his populist redistributionist campaign,  now-mayor of New York City Bill de Blasio claimed he would be able to produce 50,000 affordable apartments, basically for free (i.e. no taxpayer money), through enactment of mandatory inclusionary zoning.  He based this boast on […]

And if requiring fail? Part 1, The threat

20 March, 2014 (10:56) | Affordability, Affordable Housing, de Blasio, Development, Housing, Inclusionary zoning, Innovations, New York City, Theory, US News |

By:David A. Smith   As New York City Mayor Bill de Blasio’s administration starts with a bang (such as his assault on charter schools) and aggressively reversal of many Bloombergian policies (such as stop-and-frisk, which seemed sensible to me), what will he do with housing?   I’m only listening to you until the cameras go […]