Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962356 | Journal of Housing Economics | 2006 | 11 Pages |
Abstract
When real estate agent effort is unobservable, home sellers do not prefer the lowest possible commission rate because such a rate does not induce sufficient effort from agents. As a result, the optimal commission from the seller's perspective exhibits downward rigidity, even if there is free entry. The analysis shows that downward rigidity will occur if and only if the quasi-fixed costs of selling a house are small.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Donald Bruce, Rudy Santore,