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Full-Text Articles in Architecture
The Economics Of Conservation Subdivisions: Price Premiums, Improvement Costs, And Absorption Rates, Rayman Mohamed
The Economics Of Conservation Subdivisions: Price Premiums, Improvement Costs, And Absorption Rates, Rayman Mohamed
Rayman Mohamed
The environmental benefits of less land consumption and a growing interest in addressing the negative economic and social impacts of sprawl have resulted in calls for more sensitive subdivision designs. One such design is conservation subdivisions. However, not much is known about these subdivisions, in particular about their economics. This article addresses the issue by examining price premiums, investment costs, and absorption rates for lots in conservation versus those in conventional subdivisions. The results show that lots in conservation subdivisions carry a premium, are less expensive to build, and sell more quickly than lots in conventional subdivisions. The results suggest …
The Psychology Of Residential Developers: Lessons From Behavioral Economics And Additional Explanations For Satisficing, Rayman Mohamed
The Psychology Of Residential Developers: Lessons From Behavioral Economics And Additional Explanations For Satisficing, Rayman Mohamed
Rayman Mohamed
Researchers have repeatedly observed satisficing by residential developers. The phenomenon has been attributed to their bounded rationality. In response, policy makers have designed policies that reduce risks to assist developers in overcoming bounds on their rationality. However, after decades of such policies, there is little evidence that developers have stopped satisficing. This article argues that bounded rationality is an insufficient explanation for satisficing by small developers. Lessons from behavioral economics suggest additional reasons for satisficing by developers. Satisficing is common because developers bracket projects one at a time, bracket each investment decision in isolation of others, create nonfungible investment accounts, …