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by JoshTriplett 923 days ago
As noted elsewhere in the thread, that simplified model assumes all the units must have the same price.
2 comments

No it doesn't. It assumes some of the units have correlated prices, because units are, to some extent, fungible - if there are no one-bedroom apartments in the price range, then you'll drive up the price of pricier two-bedroom apartments due to the increased competition.
It isn't just a hypothetical. Landlords use companies like RealPage to collude on pricing and keep units vacant.
I wasn't suggesting that the net result was false, just that the model suggested in the comment I was replying to wasn't accurate, because landlords do sell the same model of apartment to different people at different prices based on when their lease started.