Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science

Could Non-elasticity Demand be Blamed for the Raising of House Price in China

Authors
Xin Tong, Susheng Wang
Corresponding Author
Xin Tong
Available Online May 2014.
DOI
10.2991/lemcs-14.2014.12How to use a DOI?
Keywords
House price; Collusion; Cournot model; Inelasticity demand; Stability;
Abstract

The Chinese house price was raised rapid and sustain, some scholars thought that the reason is the non-elasticity demand, it is said that the action of collusion of the firms is the maximum of profit. To test if the reason of collusion of housing firms in China was they faced to a non-elasticity demand, so the continuous dynamical system of duopoly Cournot game with constant elasticity demand is derived in our paper, and the stability of this system is studied, finnally the Cournot game with n-competitors is discussed. A general conclusion of existence of Nash-Cournot equilibrium was drew. The collusion of housing firms no came from the profits maximization with non-elasticity demand. The way of land supply which makes increasing marginal cost of house maybe the reason of collusion of housing supply. The conclusion of there are no solution to deal with the rapid and sustain raising of Chinese house price is wrong and Puu and Zhang made mistakes in their papers.

Copyright
© 2014, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science
Series
Advances in Intelligent Systems Research
Publication Date
May 2014
ISBN
10.2991/lemcs-14.2014.12
ISSN
1951-6851
DOI
10.2991/lemcs-14.2014.12How to use a DOI?
Copyright
© 2014, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Xin Tong
AU  - Susheng Wang
PY  - 2014/05
DA  - 2014/05
TI  - Could Non-elasticity Demand be Blamed for the Raising of House Price in China
BT  - Proceedings of the International Conference on Logistics, Engineering, Management and Computer Science
PB  - Atlantis Press
SP  - 47
EP  - 51
SN  - 1951-6851
UR  - https://doi.org/10.2991/lemcs-14.2014.12
DO  - 10.2991/lemcs-14.2014.12
ID  - Tong2014/05
ER  -