The costs of free entry: an empirical study of real estate agents in Greater Boston.
This article studies the consequences of fixed commissions and low entry barriers in Greater Boston's real estate brokerage industry from 1998-2007. We find that agent entry reduces average service quality and use a dynamic empirical model to study the inefficiency in the current market structure. T...
| Publicado en: | RAND Journal of Economics (Wiley-Blackwell) Vol. 46; no. 1; pp. 103 - 146 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Spring2015
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=100670173&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 100670173 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 07416261 56RJ jtl: RAND Journal of Economics (Wiley-Blackwell) issn: 07416261 maglogo: Y pubinfo: dt: Spring2015 vid: 46 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 100670173 10.1111/1756-2171.12082 ppf: 103 ppct: 43 formats: fmt: – @attributes: type: T – @attributes: type: P size: 682KB tig: atl: The costs of free entry: an empirical study of real estate agents in Greater Boston. aug: au: Barwick, Panle Jia Pathak, Parag A. affil: Cornell and NBER MIT and NBER su: Boston (Mass.) Sales commissions Sales incentive programs Real estate agents Real estate business sug: subj: Boston (Mass.) Offices of real estate brokers Offices of Real Estate Agents and Brokers Real estate agents Other Activities Related to Real Estate Lessors of Residential Buildings and Dwellings Sales commissions Sales incentive programs Real estate agents Real estate business ab: This article studies the consequences of fixed commissions and low entry barriers in Greater Boston's real estate brokerage industry from 1998-2007. We find that agent entry reduces average service quality and use a dynamic empirical model to study the inefficiency in the current market structure. To accommodate a large state space, we approximate the value function using sieves and impose the Bellman equation as an equilibrium constraint. Our results suggest that a 50% cut in commissions would result in 40% fewer agents, social savings that amount to 23% of industry revenue, and 73% more transactions for the average agent. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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