Title

Equilibrium in Housing and Brokerage Markets under Uncertainty

Publication Type

Journal Article

Publication Date

1986

Abstract

The purpose of this paper is to develop a model of the real estate brokerage and housing markets with imperfect information. The paper considers general equilibrium in these markets with and without a multiple listing service. Input prices are found to affect the equilibrium housing price, brokerage commission, and split factor. The introduction of a multiple listing service is found to have several important effects. The MLS causes housing value to increase, but its effect on the commission rate is indeterminate. Contrary to the results of another paper, MLS brokers, on average, will likely undertake more search for both buyers and listings than will a non-MLS broker. The primary reasons are related to the greater efficiency of search in the MLS context.

Discipline

Business

Research Areas

Finance

Publication

Journal of the American Real Estate and Urban Economics Association

Volume

14

Issue

1

First Page

1

Last Page

23

ISSN

0270-0484

Identifier

10.1111/1540-6229.00366

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