What Is Absorption Rate?

The term “absorption rate” is used to describe the rate at which properties are being sold in a given market. It is a important metric for real estate investors to track, as it can give them insight into whether the market is favouring buyers or sellers. The absorption rate is calculated by dividing the number … Read more

The Free Rider Problem: Causes and Solutions.

The Free Rider Problem: Causes and Solutions How do we deal with externalities? Externalities are essentially costs or benefits that are not taken into account by the market mechanism. They can be either positive (a benefit to someone other than the person responsible for the action) or negative (a cost to someone other than the … Read more