This paper examines the incentive and efficiency implications of buyer brokerage. We show that it is possible to perfectly align the interests of the seller with those of his agent and the interests of the buyer with those of his agent. Furthermore, effort levels can be efficient. This result is...

This paper examines the incentive and efficiency implications of buyer brokerage. We explore an alternative compensation system for buyer brokerage. Under this system the total commission is independent of the transaction price, and the listing broker receives a percentage of the selling price...

The objective of this paper is twofold. One is to provide a search-theoretical model of the marketing choice of the seller. The model explains the seemingly contradictory empirical results as to whether a seller raises the price of his house to pass on a portion of the broker's commission to the...