Bilateral matching decision-making in property trading platform: a method considering intermediary moral hazard
Abstract
Effective method of bilateral matching decision-making could drive the property transaction market more dynamic and healthier. In the property trade process, once intermediaries are conscientious, the portrait of matching parties are clearly described, a reasonable and satisfactory result can be got. However, the intermediary moral hazard and the loss of the description about the characteristics of matching parties can affect the matching result. By developing a method for a property transaction platform, this paper proposes a novel approach that considering intermediary moral hazard to improve matching efficiency. A mathematical model of intermediary moral hazard is performed, and then the price and other evaluation indicators of sellers and buyers are described by five different types of value forms. A multi-objective bilateral matching decision-making model that “minimizes the intermediary moral hazard in the case of the maximum benefits of the matching parties” is constructed and solved by the dictionary order method. A real case study of property trade platform is presented to illustrate how the proposed approach could be applied in practice. The results of this research indicate that the proposed approach is a useful tool for matching sellers and buyers under the intermediary moral hazard and has substantial practical application.
Keyword : moral hazard, intermediary, multi-type heterogeneous information, bilateral matching decision-making, property intermediary platform
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Anton, A., & Dam, K. (2020). A two-sided matching model of monitored Finance. Economica, 87(345), 132–157. https://doi.org/10.1111/ecca.12298
Azevedo, E. M. (2014). Imperfect competition in two-sided matching markets. Games and Economic Behavior, 83(1), 207–223. https://doi.org/10.1016/j.geb.2013.11.009
Balafoutas, L., Kerschbamer, R., & Sutter, M. (2017). Second-degree moral hazard in a real-world credence goods market. The Economic Journal, 127(599), 1–18. https://doi.org/10.1111/ecoj.12260
Bell, D. E. (1985). Disappointment in decision making under uncertainty. Operations Research, 33(1), 1–27. https://doi.org/10.1287/opre.33.1.1
Belleflamme, P., & Peitz, M. (2019). Managing competition on a two-sided platform. Journal of Economics & Management Strategy, 28(1), 5–22. https://doi.org/10.1111/jems.12311
Benassi, M., & Minin, A. D. (2009). Playing in between: patent brokers in markets for technology. R&D Management, 39(1), 68–86. https://doi.org/10.1111/j.1467-9310.2008.00537.x
Bertsekas, D. P. (1981). A new algorithm for the assignment problem. Mathematical Programming, 21(1), 152–171. https://doi.org/10.1007/BF01584237
Bloch, F., & Ryder, H. (2000). Two-sided search, marriage and matchmakers. International Economic Review, 41(1), 93–115. https://doi.org/10.1111/1468-2354.00056
Bojd, B., & Yoganarasimhan, H. (2022). Star-cursed lovers: role of popularity information in online dating. Marketing Science, 41(1), 73–92. https://doi.org/10.1287/mksc.2021.1301
Chen, X., Li, Z., Fan, Z. P., Zhou, X., & Zhang, X. (2016). Matching demanders and suppliers in knowledge service: a method based on fuzzy axiomatic design. Information Sciences, 346, 130–145. https://doi.org/10.1016/j.ins.2016.01.096
Cullen, Z., & Farronato, C. (2021). Outsourcing tasks online: matching supply and demand on peer-to-peer internet platforms. Management Science, 67(7), 3985–4003. https://doi.org/10.1287/mnsc.2020.3730
Davoudabadi, R., Mousavi, S. M., & Mohagheghi, V. (2020). A new last aggregation method of multi-attributes group decision making based on concepts of TODIM, WASPAS and TOPSIS under interval-valued intuitionistic fuzzy uncertainty. Knowledge and Information Systems, 62(4), 1371–1391. https://doi.org/10.1007/s10115-019-01390-x
Echenique, F., & Bumin, Y. M. (2007). A solution to matching with preferences over colleagues. Games and Economic Behavior, 59(1), 46–71. https://doi.org/10.1016/j.geb.2006.07.003
Echenique, F., & Oviedo, J. (2004). Core many-to-one matchings by fixed-point methods. Journal of Economic Theory, 115(2), 358–376. https://doi.org/10.1016/S0022-0531(03)00184-4
Fudge Kamal, D. K., Honoré, F., & Nistor, C. (2021). When the weak are mighty: a two-sided matching approach to alliance performance. Strategic Management Journal, 42(5), 917–940. https://doi.org/10.1002/smj.3275
Gale, D., & Shapley, L. S. (1962). College admissions and the stability of marriage. The American Mathematical Monthly, 69(1), 9–15. https://doi.org/10.4169/amer.math.monthly.120.05.386
Greinecker, M., & Kah, C. (2021). Pairwise stable matching in large economies. Econometrica, 89(6), 2929–2974. https://doi.org/10.3982/ECTA16228
Halaburda, H., Jan, P. M., & Yıldırım, P. (2018). Competing by restricting choice: the case of search platforms. Management Science, 64(8), 3574–3594. https://doi.org/10.1287/mnsc.2017.2797
Halevy, N., Halali, E., & Cohen, T. R. (2020). Brokering orientations and social capital: influencing others’ relationships shapes status and trust. Journal of Personality and Social Psychology, 119(2), 293–316. https://doi.org/10.1037/pspi0000213
Hatfield, J. W., & Kojima, F. (2010). Substitutes and stability for matching with contracts. Journal of Economic Theory, 145(5), 1704–1723. https://doi.org/10.1016/j.jet.2010.01.007
Hoppe, H. C., & Ozdenoren, E. (2005). Intermediation in innovation. International Journal of Industrial Organization, 23(5), 483–503. https://doi.org/10.1016/j.ijindorg.2005.03.003
Hu, M., & Zhou, Y. (2022). Dynamic type matching. Manufacturing & Service Operations Management, 24(1), 125–142. https://doi.org/10.1287/msom.2020.0952
Hui, E. C. M., & Yam, S. C. P. (2014). Can we beat the “buy-and-hold” strategy? Analysis on European and American securitized real estate indices. International Journal of Strategic Property Management, 18(1), 28–37. https://doi.org/10.3846/1648715X.2013.862190
Irving, R. W, Manlove, D. F, & Scott, S. (2008). The stable marriage problem with master preference lists. Discrete Applied Mathematics, 156(15), 2959–2977. https://doi.org/10.1016/j.dam.2008.01.002
Italo, A. G., & Oswaldo, M. (2020). Reverting to informality: unregistered property transactions and the erosion of the titling reform in Peru. Economic Development and Cultural Change, 69(1), 317–334. https://doi.org/10.1086/703064
Jiang, Z. Z., Ip, W. H., Lau, H. C. W., & Fan, Z. P. (2011). Multi-objective optimization matching for one-shot multi-attribute exchanges with quantity discounts in e-brokerage. Expert Systems with Applications, 38(4), 4169–4180. https://doi.org/10.1016/j.eswa.2010.09.079
Kadadha, M., Otrok, H., Singh, S., Mizouni, R., & Ouali, A. (2021). Two-sided preferences task matching mechanisms for blockchain-based crowdsourcing. Journal of Network and Computer Applications, 191, 103155. https://doi.org/10.1016/j.jnca.2021.103155
Kumar, K., & Chen, S. M. (2021). Multi-attribute decision making based on interval-valued intuitionistic fuzzy values, score function of connection numbers, and the set pair analysis theory. Information Sciences, 551, 100–112. https://doi.org/10.1016/j.ins.2020.11.032
Lee, S., & Niederle, M. (2015). Propose with a rose? Signaling in internet dating markets. Experimental Economics, 18(4), 731–755. https://doi.org/10.1007/s10683-014-9425-9
Liang, D. C., He, X., & Xu, Z. S. (2020). Multi-attribute dynamic two-sided matching method of talent sharing market in incomplete preference ordinal environment. Applied Soft Computing, 93(1), 1–18. https://doi.org/10.1016/j.asoc.2020.106427
Liang, H. M., & Jinag, Y. P. (2013). A method for buy-sell two-sided matching decision-making method considering the trade attitude of the broker. Operations Research and Management Science, 22(5), 129–133. http://www.jorms.net/EN/Y2013/V22/I5/128
Liu, L. J., Zuo, W. J., Hu, Q., & Zeng, L. T. (2022). Research on property service mode innovation in the context of transformation and upgrading. International Journal of Strategic Property Management, 26(5), 332–344. https://doi.org/10.3846/ijspm.2022.17588
Liu, X., Liu, L., & Qi, E. S. (2017). A buy-sell two-sided matching decision-making method for the e-brokerage based on double reference points. Operations Research and Management Science, 26(3), 72–77.
Meng, L., Erik, B., & Jason, D. (2021). Do digital platforms reduce moral hazard? The case of Uber and Taxis. Management Science, 67(8), 4665–4685. https://doi.org/10.1287/mnsc.2020.3721
Munkres, J. (1957). Algorithms for the assignment and transportation problems. Journal of the Society for Industrial and Applied Mathematics, 5(1), 32–38. https://doi.org/10.1137/0105003
Pais, J. (2008). Random matching in the college admissions problem. Economic Theory, 35(1), 99–116. https://doi.org/10.1007/s00199-006-0191-6
Pierce, L., Snow, D. C., & McAfee, A. (2015). Cleaning house: the impact of information technology monitoring on employee theft and productivity. Management Science, 61(10), 2299–2319. https://doi.org/10.1287/mnsc.2014.2103
Ribeiro, E. P., & Golovanova, S. (2020). A unified presentation of competition analysis in two-sided markets. Journal of Economic Surveys, 34(3), 548–571. https://doi.org/10.1111/joes.12362
Roth, A. E. E. (1985). Conflict and coincidence of interest in job matching: some new results and open questions. Mathematics of Operations Research, 10(3), 379–389. https://doi.org/10.1287/moor.10.3.379
Roth, A. E., Rothblum, U. G., & Vande, V. J. H. (1993). Stable matchings, optimal assignments and linear programming. Mathematics of Operations Research, 18(4), 803–828. https://doi.org/10.1287/moor.18.4.803
Rothblum, U. G. (1992). Characterization of stable matchings as extreme points of a polytope. Mathematical Program, 54(1), 57–67. https://doi.org/10.1007/BF01586041
Sasaki, H., & Toda, M. (1996). Two-sided matching problems with externalities. Journal of Economic Theory, 70(1), 93–110. https://doi.org/10.1006/jeth.1996.0077
Sim, K. M., & Chan, R. A. (2000). A brokering protocol for agent-based ecommerce. IEEE Transactions on Systems, Man, and Cybernetics, Part C (Applications and Reviews), 30(4), 474–484. https://doi.org/10.1109/5326.897074
Sladić, G., Milosavljević, B., Nikolić, S., Sladić, D., & Radulović, A. (2021). A blockchain solution for securing real property transactions: a case study for Serbia. ISPRS International Journal of Geo-Information, 10(1), 35. https://doi.org/10.3390/ijgi10010035
Suzuki, M., & Shibata, A. (2022). The economic premium of housing certificates aimed at promoting long-life property and transaction of existing housing in Japan. Journal of Cleaner Production, 366, 132935. https://doi.org/10.1016/j.jclepro.2022.132935
Teo, C. P., Sethuraman J., & Tan, W. P. (2001). Gale-Shapley stable marriage problem: revisited strategic issues and applications. Management Science, 47(9), 1252–1267. https://doi.org/10.1287/mnsc.47.9.1252.9784
Wang, R. C., & Chuu, S. J. (2004). Group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a manufacturing system. European Journal of Operational Research, 154(3), 563–572. https://doi.org/10.1016/S0377-2217(02)00729-4
Wang, R., & Li, D. F. (2017). Bargain game models of the second-hand housing commence. Journal of Systems Engineering, 32(5), 588–595. https://doi.org/10.13383/j.cnki.jse.2017.05.002
Wang, R., Li, D. F., & Yu, G. F. (2020). Research on bilateral matching decision method considering attribute association in heterogeneous information environment. Journal of Intelligent & Fuzzy Systems, 38(4), 4779–4792. https://doi.org/10.3233/JIFS-191495
Yash, K., & Daniela, S. (2021). Facilitating the search for partners on matching platforms. Journal of Personality and Social Psychology Management Science, 67(10), 5990–6029. https://doi.org/10.1287/mnsc.2020.3794
Yu, D. J., Kou, K., Xu, Z. S., & Shi, S. S. (2021). Analysis of collaboration evolution in AHP research: 1982–2018. International Journal of Information Technology & Decision Making, 20(1), 7–36. https://doi.org/10.1142/S0219622020500406
Yu, D. J., Sheng, L. B., & Xu, Z. S. (2022). Analysis of evolutionary process in intuitionistic fuzzy set theory: a dynamic perspective. Information Sciences, 601, 175–188. https://doi.org/10.1016/j.ins.2022.04.019
Yu, D. J., Wang, W. R., Zhang, W. Y., & Zhang, S. (2018a). A bibliometric analysis of research on multiple criteria decision making. Current Science, 114(4), 747–758. https://doi.org/10.18520/cs/v114/i04/747-758
Yu, D. J., Xu, Z. S., & Wang, W. R. (2018b). Bibliometric analysis of fuzzy theory research in China: a 30-year perspective. Knowledge-Based Systems, 141, 188–199. https://doi.org/10.1016/j.knosys.2017.11.018
Yu, G. F., & Li, D. F. (2022). A novel intuitionistic fuzzy goal programming method for heterogeneous MADM with application to regional green manufacturing level evaluation under multi-source information. Computers & Industrial Engineering, 174, 108796. https://doi.org/10.1016/j.cie.2022.108796
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1993). The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 21(1), 1–12. https://doi.org/10.1177/0092070393211001
Zhang, D., Sun, T., Chen, Y., & Wan, L. Q. (2018). Two-sided matching method considering psychological behavior of agents based on multi-form preference information. Computer Integrated Manufacturing Systems, 24(12), 3136–3143.
Zhang, Z., Gao, J., Gao, Y., & Yu, W. (2021). Two-sided matching decision making with multigranular hesitant fuzzy linguistic term sets and incomplete criteria weight information. Expert Systems with Applications, 168, 114311. https://doi.org/10.1016/j.eswa.2020.114311
Zolnik, E. (2020). A longitudinal analysis of the effect of public rail infrastructure on proximate residential property transactions. Urban Studies, 57(8), 1620–1641. https://doi.org/10.1177/0042098019836564
Zuo, W. J., Li, D. F., & Yu, G. F. (2020). A general multi-attribute multi-scale decision making method based on dynamic LINMAP for property perceived service quality evaluation. Technological and Economic Development of Economy, 26(5), 1052–1073. https://doi.org/10.3846/tede.2020.12726
Zuo, W. J., Liu, L. J., Hu, Q., Zeng, S. Z., & Hu, Z. M. (2023). A property perceived service quality evaluation method for public buildings based on multisource heterogeneous information fusion. Engineering Applications of Artificial Intelligence, 122, 106070. https://doi.org/10.1016/j.engappai.2023.106070