Chapter 5 Models with randomness
In this chapter the concept of randomness and the related key statistic notations are introduced. This is essential to understand why information asymmetry and a lack of transparency can cause conflicts in business relationships. It further explains how tasks and risks should best be allocated to achieve efficient outcomes in a collaboration.
5.1 Introduction
Decision-makers in the real estate industry are confronted with randomness in many situations. Take for example the marketing of a project: If a broker is engaged by the building owner to sell a property, it is initially unclear whether a deal will be closed successfully or not. This depends on many factors: Will the broker call enough potential buyers? ...
Get Information Economics with Real Estate Applications now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
