If departing tenants sell access to rent-controlled apartments, whi is likely to end up with the apartments? How else might scarce rent-controlled apartments be distributed?

1) the highest bidders will end up with the appartment, with the "economic rent" from the value of a rent controlled apt being split between the departing and new tenent.

2) how else might they be distributed? In a multitude of ways.
a) remove the rent controls and let the market distribute.
b) keep the rent controls but empower a government agency to do the distributing.
c) keep the rent controls but with limited and short leases. Re-distribute the apt after the end of the lease.
d) Mandate that tenents in rent-controlled meet some easily-measured condition.
e) impose a special or civic duty to tenents
f) impose a special tax on tenents.

Be creative and you could come up with additional methods.

(a) According to table 4.1, by how much would coffee sales decline if the price of coffee increased by 20 percent? (b) If Starbucks raised its coffee prices by the same amount, would sales decline by more, less, or the same amount?

problems

question 4

If departing tenants sell access to rent-controlled apartments, the likely outcome is that the highest bidders will end up with the apartments. In this scenario, the departing tenant benefits from the economic rent by selling access to the apartment, while the new tenant gains the opportunity to live in a rent-controlled apartment.

However, there are alternative ways to distribute scarce rent-controlled apartments:

1) Removing rent controls and allowing the market to distribute: By eliminating rent controls, the apartments would be allocated based on the market demand and supply dynamics. This approach relies on the free market to determine the price and allocation of rental properties.

2) Empowering a government agency for distribution: Another alternative could be to keep rent controls in place but establish a government agency responsible for allocating rent-controlled apartments. This agency would ensure fair and equitable distribution based on predetermined criteria, such as income level or housing needs.

3) Implementing limited and short leases: Under this approach, rent controls could be maintained, but the leases for rent-controlled apartments would be limited in duration. At the end of each lease, the apartment would be redistributed to another tenant, ensuring more frequent turnover and opportunities for others to benefit from rent control.

4) Introducing easily measurable conditions for tenants: Rent-controlled apartments could be allocated based on specific criteria that can be easily measured, such as income level, household size, or specific housing needs. This method ensures that those who meet the defined conditions have access to these apartments.

5) Imposing a special or civic duty on tenants: An alternative method could involve requiring tenants of rent-controlled apartments to fulfill certain special or civic duties in exchange for the housing. This could include community service, volunteer work, or participation in neighborhood improvement initiatives.

6) Imposing a special tax on tenants: Another creative approach could involve levying a special tax on tenants of rent-controlled apartments. The revenue generated from the tax could be used to allocate and maintain these apartments for those who need them the most.

It's important to consider that different approaches to distributing rent-controlled apartments have both advantages and drawbacks. Ultimately, the choice depends on societal values, housing policies, and the specific goals of the governing body.