Tous les séminaires
Jeudi 28 Janvier 2010
Amine OUAZAD (INSEAD)
"Blockbusting : Brokers and the Dynamics of Segregation"
de 14 h à 15 h 30 en Salle S016 à l'INSEE-CREST, 15 Boulevard Gabriel Péri, 92245 MALAKOFF (Métro : Malakoff/Plateau de Vanves (Immeuble "Malakoff 2)).
Résumé : Legal and historical evidence suggest that real estate brokers played a substantial role in the white flight. This paper introduces real estate brokers in a tipping model of segregation. The model features voluntary disclosure of public information in a game with private information and strategic complementarities. Real estate brokers can disclose a signal to shift the equilibrium, i.e. "make the neighborhood tip" and they make profit on commission fees. Welfare implications depend on black households' bargaining power and white households' racial preferences. The model has applications in macroeconomics and in finance.