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1 – 10 of 128The intent of this paper is to identify uncertainty surrounding automated valuation models (AVMs) valuations and the criteria by which a valuer could judge the accuracy of an AVM…
Abstract
Purpose
The intent of this paper is to identify uncertainty surrounding automated valuation models (AVMs) valuations and the criteria by which a valuer could judge the accuracy of an AVM estimate of value when being assisted by such AVM as a valuation tool.
Design/methodology/approach
European law and European Valuation Standards allow valuers to use AVMs as one tool among others in reaching an estimation of Market Value, but only insofar as the valuer is able to satisfy him/herself and the client of the relevance of the AVM report, its inputs and outputs. To enable this, it thus becomes essential that AVMs be more transparent and their accuracy verified.
Findings
This paper recommends minimum reporting requirements thereby enabling an assessment of AVM valuations. At the outset, a distinction needs to be made between two groups of AVM users: banks and valuers. Banks will require considerably more information, including details of the types of models employed and “Bulk” accuracy test results.
Practical implications
This paper addresses the minimum information needed by valuers in order to gauge the usefulness and accuracy of the AVMs they propose to use as one of their valuation tools.
Originality/value
This paper provides guidance on minimum information requirements for AVMs. Indeed, it may be that the AVM vendors' industry will recognise that providing more transparency in their reports along the lines suggested would facilitate a wider and more supportive acceptance of AVMs.
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Luca Marinelli, Fabio Fiano, Gian Luca Gregori and Lucia Michela Daniele
The purpose of this paper is to investigate the food and beverage automatic retail environment by analysing the impact of planograms, conceived as a visual merchandising practice…
Abstract
Purpose
The purpose of this paper is to investigate the food and beverage automatic retail environment by analysing the impact of planograms, conceived as a visual merchandising practice and shopping time – the time spent making a purchase – as part of food consumer purchasing behaviour to further enrich the debate on the ability of companies to absorb customer knowledge.
Design/methodology/approach
A real-world experiment was conducted using a sample of 27,230 valid observations of consumer purchasing decision-making processes at automatic vending machines (AVMs). Data were collected by a shopper behaviour analytics system that allows for a better understanding of the AVM users' behaviour. Two sets of regressions were run to test the two hypotheses.
Findings
The experimental results demonstrated that planograms – the planned, systematic organisation of products in an AVM – positively impact food purchases. A planogram acts as a mediator in the relationship between shopping time and purchase, resulting in shorter shopping times and more purchases.
Originality/value
This work adds to the customer knowledge literature by focussing on customer behaviour in the food and beverage automated shopping environment. The shopper analytics technology adopted to collect real-time data leads to a better understanding of the purchasing behaviour of AVMs' users and provides new marketing and retail insights into AVMs' performance that retailers can use to improve their marketing strategies.
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Michael S.W. Lee and Mike Male
The purpose of this paper is to discuss the main reasons driving the anti‐vaccination movement (AVM) and relate similarities and differences of the AVM with the anti‐consumption…
Abstract
Purpose
The purpose of this paper is to discuss the main reasons driving the anti‐vaccination movement (AVM) and relate similarities and differences of the AVM with the anti‐consumption of other products.
Design/methodology/approach
The paper conducts thematic analysis of various online sources, including medical journals, blogs, science articles and business/social science databases.
Findings
First, the paper outlines the main themes (religion, freedom of choice, risk, and uncertainty) driving the anti‐consumption of vaccines. Second, it explains why the AVM is a unique and paradoxical form of anti‐consumption. Third, although much anti‐consumption behaviour is motivated by the belief that rejecting certain acts of consumption may be beneficial to society, the paper uses the AVM to show that not all anti‐consumption behavior has clear‐cut benefits for society.
Research limitations/implications
While this is predominately a conceptual paper, a commentary on the AVM has never been attempted by business scholars. This is surprising since business scholars are able to bring a more impartial viewpoint to the debate than both the medical establishment and proponents of natural therapy. As this paper is not associated with medical interests, nor the AVM, the focus is on the welfare of consumers and as such, a more detached perspective may be useful in this controversial area.
Practical implications
Since the AVM debate is filled with much uncertainty, the paper recommends a more balanced/respectful approach by the medical community, pro‐vaccinators and the AVM.
Originality/value
Unlike previous work in the area, this research intersects commercial, societal, and medical interests. It also highlights AVM as an interesting case where large groups of people sharing similar anti‐consumption behaviours are actually incompatible with one another.
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Brano Glumac and François Des Rosiers
The current state-of-the-art recognises three traditional valuation approaches. The current division is not sufficient to explain systematically all features that drive the…
Abstract
Purpose
The current state-of-the-art recognises three traditional valuation approaches. The current division is not sufficient to explain systematically all features that drive the development and usage of automated valuation models.
Design/methodology/approach
This practice briefing reviews existing valuation approaches, their pros and cons and more critical other automated valuation aspects or features; both based on a literature review.
Findings
This paper discusses and lists the six critical aspects or features, besides the valuation approaches.
Practical implications
This paper reveals the list of aspects or features that are important to consider when designing an automated valuation model.
Originality/value
This practice briefing discusses the inclusion of a multitude of aspects when considering an automated valuation model design.
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Olga Filippova, Jeremy Gabe and Michael Rehm
Automated valuation models (AVMs) are statistical asset pricing models omnipresent in residential real estate markets, where they inform property tax assessment, mortgage…
Abstract
Purpose
Automated valuation models (AVMs) are statistical asset pricing models omnipresent in residential real estate markets, where they inform property tax assessment, mortgage underwriting and marketing. Use of these asset pricing models outside of residential real estate is rare. The purpose of the paper is to explore key characteristics of commercial office lease contracts and test an application in estimating office market rental prices using an AVM.
Design/methodology/approach
The authors apply a semi-log ordinary least squares hedonic regression approach to estimate either contract rent or the total costs of occupancy (TOC) (“grossed up” rent). Furthermore, the authors adopt a training/test split in the observed leasing data to evaluate the accuracy of using these pricing models for prediction. In the study, 80% of the samples are randomly selected to train the AVM and 20% was held back to test accuracy out of sample. A naive prediction model is used to establish accuracy prediction benchmarks for the AVM using the out-of-sample test data. To evaluate the performance of the AVM, the authors use a Monte Carlo simulation to run the selection process 100 times and calculate the test dataset's mean error (ME), mean absolute error (MAE), mean absolute percentage error (MAPE), median absolute percentage error (MdAPE), coefficient of dispersion (COD) and the training model's r-squared statistic (R2) for each run.
Findings
Using a sample of office lease transactions in Sydney CBD (Central Business District), Australia, the authors demonstrate accuracy statistics that are comparable to those used in residential valuation and outperform a naive model.
Originality/value
AVMs in an office leasing context have significant implications for practice. First, an AVM can act as an impartial arbiter in market rent review disputes. Second, the technology may enable frequent market rent reviews as a lease negotiation strategy that allows tenants and property owners to share market risk by limiting concerns over high costs and adversarial litigation that can emerge in a market rent review dispute.
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The paper's purpose is to review the growth of computer supported valuation models and the increased access via information technology to property data in the world of property…
Abstract
Purpose
The paper's purpose is to review the growth of computer supported valuation models and the increased access via information technology to property data in the world of property taxation. The paper aims to stimulate debate on what the short/medium term future may hold. Is there room for both traditional valuation surveying skills and computer mass appraisal models in the enlightened property taxation world, where transparency and access to property data is expected?
Design/methodology/approach
The paper compares and contrasts developments and trends in the use of automated valuation models (AVMs) across the world to assess property for local taxation purposes. It focuses in detail on three automated property taxation valuation systems of which the author has working knowledge and experience: Valuation Office Agency – Council Tax (Dwellings) and Non Domestic Rating (Commercial); Northern Ireland Valuation and Lands Agency – Domestic (Dwellings); Hong Kong Rating and Valuation Department (Dwellings and Commercial) property. The paper also considers the progress made in access to property data and data storage/retrieval.
Findings
Automated valuation programmes assist in the production of a valuation but its quality and accuracy are data and valuer led. One size does not fit all and there is no automated replacement for the subjective professional judgement of the valuer.
Originality/value
This paper considers the challenges, opportunities and possible problems when using computer driven valuation models for property taxation purposes.
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Brano Glumac and François Des Rosiers
Automated valuation models have been in use at least for the last 50 years in both academia and practice, while automated valuation recently re-emerged as very important with the…
Abstract
Purpose
Automated valuation models have been in use at least for the last 50 years in both academia and practice, while automated valuation recently re-emerged as very important with the rise of digital infrastructure. The current state of the art, therefore, justifies the dual contributions of this paper: organising existing knowledge and providing a new framework.
Design/methodology/approach
This paper provides much-needed analysis and synthesis of the accumulated body of knowledge by proposing an updated classification of automated valuation approaches based on two criteria, and a taxonomy adapted to new trends. The latter requires a paradigm shift from models to automated valuation systems. Both classification and taxonomy arose after literature review.
Findings
This paper provides a framework for an explicit context under which automated valuation is carried out. To do so, authors propose a definition of automation valuation systems; contextualise the differences among theories, approaches, methods, models and systems present in automated valuation and introduce a classification of automated valuation approaches and a non-hierarchical taxonomy of automated valuation systems.
Research limitations/implications
Perhaps, a systematic literature review process instead of a selective list of 100 references could additionally validate the proposed classification and taxonomy.
Practical implications
The new framework, underlying various dimensions of the automated valuation process, can help practitioners surpass judging models based purely on their predictive accuracy. Also, the automated valuation system is a more generic term that can better accommodate future research coming from a multitude of disciplines, more diverse business areas and enlarged variety of practical users.
Originality/value
This is the first paper that develops a taxonomy of automated valuation systems.
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Seoki Lee, John W. O’Neill and Sean McGinley
This study aims to examine previously identified hotel automated valuation models (AVMs) using a more extensive and updated sample of hotel sale transaction data, introduce…
Abstract
Purpose
This study aims to examine previously identified hotel automated valuation models (AVMs) using a more extensive and updated sample of hotel sale transaction data, introduce economic conditions as a new determinant for hotel market value and test the moderating role of economic conditions on the relationship between the previously identified indicators and market value, operationalized as sale transaction price.
Design/methodology/approach
This study performs simple and multiple regression analyses to examine the proposed relationships. The sample period is from 2000 to 2012, because the economy prior to 2000 is likely to have been a less-relevant economic environment for the contemporary business world.
Findings
As hypothesized, there is an insignificant main effect of economic conditions on hotel sale prices. A moderating role of economic conditions on the relationship between average daily rate (and net operating income) and market value was found, while no moderating effect was found for occupancy rate and hotel size. Results also find certain support for AVMs previously presented in the literature, as described herein.
Originality/value
This study attempts to make contributions to the existing lodging and real estate literature by investigating a main effect of economic conditions on hotel sale prices and a moderating role of economic conditions on the relationship between various hotel performance indicators and hotel sale prices. In addition, this study operationalizes a relatively extensive (large base sample size of 2,441 hotel sale transactions) and recent (since 2000) database compared to previous studies.
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In the literature there are numerous tests that compare the accuracy of automated valuation models (AVMs). These models first train themselves with price data and property…
Abstract
Purpose
In the literature there are numerous tests that compare the accuracy of automated valuation models (AVMs). These models first train themselves with price data and property characteristics, then they are tested by measuring their ability to predict prices. Most of them compare the effectiveness of traditional econometric models against the use of machine learning algorithms. Although the latter seem to offer better performance, there is not yet a complete survey of the literature to confirm the hypothesis.
Design/methodology/approach
All tests comparing regression analysis and AVMs machine learning on the same data set have been identified. The scores obtained in terms of accuracy were then compared with each other.
Findings
Machine learning models are more accurate than traditional regression analysis in their ability to predict value. Nevertheless, many authors point out as their limit their black box nature and their poor inferential abilities.
Practical implications
AVMs machine learning offers a huge advantage for all real estate operators who know and can use them. Their use in public policy or litigation can be critical.
Originality/value
According to the author, this is the first systematic review that collects all the articles produced on the subject done comparing the results obtained.
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Audiovisual works – especially cinematographic works – are at the heart of the changes resulting from the development of the information society. Media convergence radically…
Abstract
Purpose
Audiovisual works – especially cinematographic works – are at the heart of the changes resulting from the development of the information society. Media convergence radically changed the way traditional audiovisual content is produced, distributed, consumed and eventually archived. Film producers slowly started to experiment with new ways of digital production such as the shortening of release windows to favor new on demand services. How does this translate to European film policy? Due to the unique double nature of cinematographic works which are both economic and cultural goods at the same time, the European film policy is at the crossing point of media, culture, competition and heritage. This paper seeks to address these issues.
Design/methodology/approach
In this research paper the authors assessed to what extent the adoption of digital technologies is stimulated throughout the value chain of film making and more precisely to what degree the distribution of a European culturally diverse catalogue of films is encouraged.
Findings
For the first time in history, European producers have the tools at their disposal to collaborate, promote and distribute internationally, at lower transaction costs and at a higher speed, and to look beyond their national market. The fast‐evolving technological developments provided the European legislator with the opportunity to strengthen and support the promotion of the European cultural identity in all its diversity. But is this also reflected in the current legislative framework? It is clear that different hurdles still need to be tackled.
Originality/value
In this research paper an overview is given of the regulatory steps that have been taken so far in the field of European film policy to stimulate the digital production and distribution of European film productions. In the context of new unfolding alliances between stakeholders and experiments with premium video‐on‐demand or shorter cinema release windows, the relevance of digital production and distribution schemes can no longer be neglected. The emergence of web‐based services including cloud computing is likely to accelerate this trend.
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