# WP19 baseline parameterisation — ILLUSTRATIVE, not calibrated to data.
# Time unit = year. Values and prices in units of the mean buyer valuation of the quality segment (q = 1).
name: baseline
seed: 20261020
preferences:
  r: 0.04            # discount rate (per year)
sellers:
  s: 1.0             # listing inflow (normalisation; per year)
  delta: 0.5         # exogenous withdrawal hazard (per year): ~10-20 % of listings withdrawn at baseline hazards
  w0: 0.8            # seller's own-use (withdrawal) value, units of q: gains from trade ~20 % + match component
  c_min: 0.02        # carrying cost of the most patient seller (2 % of value per year: maintenance, taxes)
  c_max: 0.30        # carrying cost of the most urgent seller (30 %/yr: double housing, bridge loan, relocation, distress)
  n_types: 9         # discrete approximation of F (Gauss-Jacobi-like midpoints of a Beta distribution)
  beta_a: 2.0        # Beta(a,b) shape of F on [c_min, c_max]
  beta_b: 4.0        #   -> right-skewed: most sellers patient, a minority urgent
buyers:
  k: 0.02            # sunk entry cost (2 % of value: inspections, search set-up, agent engagement)
  kappa_b: 0.05      # flow search cost while active (5 %/yr: temporary housing, time, uncertainty)
  phi: 0.85          # qualification probability per meeting (baseline screen)
matching:
  A: 4.5             # matching efficiency: meetings per year per side at theta = 1
  alpha: 0.5         # elasticity of meetings w.r.t. buyers
bargaining:
  beta: 0.5          # seller's Nash share
match_values:
  dist: truncnorm    # log-concave density => IFR (Proposition 2 conditions hold)
  mu: 1.0
  sigma: 0.10
  lo: 0.70
  hi: 1.30
financing_extension:   # Experiment 4 only
  pi: 0.30           # share of cash buyers at entry
  nu: 12.0           # financing resolution rate (per year): ~1 month
  phi: 0.85          # approval probability
numerics:
  theta_bounds: [0.02, 60.0]
  root_xtol: 1.0e-12
  grid_check_points: 60
dynamics:              # Experiment 9
  T: 8.0             # horizon (years)
  dt: 0.02           # time step (years), ~1 week
  damping: 0.3
  tol: 1.0e-7
  max_iter: 400