Are Brokers' Commission Rates on Home Sales Too High? A Conceptual Analysis
Richard Arnott () and
No 302., Boston College Working Papers in Economics from Boston College Department of Economics
Many people believe that prevailing commission rates for residential real estate brokers are "too high" but do not offer a formal model. This paper presents a general equilibrium model of the housing market in which real estate brokers serve as matching intermediaries. We use this model to construct an illustrative example which is "calibrated" using data representative of a typical housing market.
Keywords: real estate brokers; commission rate; matching technology; mismatch costs; idiosyncratic tastes (search for similar items in EconPapers)
JEL-codes: D0 H0 R2 (search for similar items in EconPapers)
Pages: 38 pages
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Journal Article: Are Brokers' Commission Rates on Home Sales Too High? A Conceptual Analysis (1999)
Working Paper: Are Brokers' Commission Rates on Home Sales Too High? A Conceptual Analysis (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:302
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