Oligopsony Hypothesis in the Real Estate Market. Supply Fragmentation and Demand Reduction in the Economic Crisis

This paper intends to examine the property market structure, taking into account the effects determined by the 2007 financial crisis, that has hit the real estate sector producing both the multiplication and fragmentation of the supply and a progressive reduction in the demand. Starting from an examination of the market structures that typically describe the behaviors of the real estate market operators, the research prefigures the hypothesis of oligopsony, normally referable to movable asset classes. As evidence of the hypothesis, a case study referring to the city of Cosenza (Southern Italy) has been analyzed. The study carried out highlights market anomalies that can occur in specific conditions, by determining the difficulty to identify reliable comparables for the assessment of property market values.