Social Factors Affecting Landlords in the Determination of Rent

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Abstract
The mainstream economist explanation of intercity rent differentials as determined solely by supply and demand is incomplete and sociologically naive. Rents within any particular area are set by landlords, and landlords' decisions in these matters take into account and are shaped by a variety of social as well as economic factors. This article uses open-ended interview data collected from landlords in one city to identify social factors that differentially affect the rent-setting decisions of three categories of landlord-the amateur, the small-scale professional, and the large-scale professional. Contrary to the assumptions of conventional economists, the study suggests that landlords operate in a more cooperative than competitive fashion.