– The purpose of this paper is to test whether bad real estate owners drive out good real estate owners from the online marketplace for offices.
– This research is based on a statistical analysis of the advertisement of offices in Malmö CBD, collected weekly during a period of one year.
– The hypothesis that the market for advertisement of office properties is a lemons market cannot be rejected. The result that owners who have appeared in court more than once in the last two years being more inclined to advertise supports this.
– The research in this paper is limited to the Malmö CBD office market.
– It provides an insight in how the online marketplace for offices works as a marketplace and how quality signals influences advertisement.
– This paper is a direct test of Akerlof’s classical lemon model.
