Disruptive Innovation and Real Estate Agency: The Disruptee Strikes Back

Seow Eng Ong, Davin Wang and Calvin Chua ()
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Seow Eng Ong: National University of Singapore
Davin Wang: National University of Singapore
Calvin Chua: National University of Singapore

The Journal of Real Estate Finance and Economics, 2023, vol. 67, issue 2, No 5, 287-317

Abstract: Abstract The real estate agency industry has seen the emergence and growth of disruptive technology and innovation to the extent that real estate agents view search portals such as Zillow and Purplebricks as serious competition. In response to these threats, a major real estate agency in Singapore, OrangeTee, launched a property agent review and rating program called Property Agent Review (PAR) to provide better information on their agents for prospective clients. The PAR program provides a natural experiment to test the effect of informative reviews and ratings on agent performance in terms of commissions and transactions. This is done via a difference-in-difference approach, carefully controlling for observed agent characteristics and market conditions. This paper also analyses the informativeness of reviews.

Keywords: Realtors; Disruptions; Technology; Commission; Market signals (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11146-023-09942-3

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