This paper investigates the incentives of agents working with buyers (buying agents) under the fixed percentage commission system (FPCS) and the implications on housing market outcomes. Our model shows that the FPCS without a binding contract between the buyer and the buying agent could produce...

Although agent effort is essential and a given in the residential brokerage market, it is difficult to observe and quantify. We estimate a simultaneous systems model using virtual tours as a proxy for observable agent effort. By studying a period during which a visible technological innovation...