This may be a naive question, but here goes…
Imagine a model where the household problem is to maximize consumption subject to labor vs. leisure, ROI on financial assets (shares in firms), and buying vs. renting houses.
The firm problem is to maximize profits based on output minus cost of labor*wages, issuing shares and paying dividends on those shares, and selling houses for profit to households that want to buy houses at that price.
We could imagine that at each step of the lifecycle there are a certain number of agents who want to buy houses, a certain number who want to sell houses, and the firm has a certain capacity to produce houses profitably at a price (to make up the difference between households buying and selling houses). Households would need to discount their houses to sell successfully the firm’s new price house.
A google search tells me that VFI is a well-known technique for modeling auctions. Is it sensible to try to implement an auction step in a VFIToolkit Life-Cycle or OLG model? If so, what would the pseudo-code look like?