Bilevel Negotiation Protocol for Multiagent Simulation of Housing Transactions and Market Clearing Processes

Abstract

Models of residential choice behavior play a central role in integrated land use–transportation models. An agent-based model was developed of the negotiation process between selling and buying agents to represent price formation and clearance processes in housing markets. The model takes into account the heterogeneity of the goods traded, behavior protocols, imperfect knowledge, and strategic behavior of interacting households and real estate agents in price negotiations. A framework was developed, and the results of numerical experiments conducted to test the model are discussed.