Previous research (Rutherford et al., 2005; Levitt and Syverson, 2005) identify and quantify agency problems in the brokerage of single-family houses. Real estate agents are found to receive a premium when sellling their own houses in comparison to similar client-owned houses. Given the homogeneity...

We analyze a dynamic model of informed trading where a shareholder accumulates shares in an anonymous market and then expends costly effort to change the firm value. We find that equilibrium prices are affected by the position accumulated by the shareholder, because the level of effort...