This paper investigates price distortions in dual agent real estate transactions. Consistent with the literature, we find that dual agent has a null effect on sale price. However, dual agent distortions on sale price emerge after controlling for the ownership of the property. We find that dual...

Mechanisms where intermediaries charge a commission fee and have the sellers set the price are widely used in practice e.g. by real estate agents, stock brokers, art galleries, or auction houses. We model competition between intermediaries in a dynamic random matching model, where in every...

The author constructs a theoretical model to examine the effects of an inherent conflict of interest between a seller of a house and the real estate broker hired by the seller. The model is then used to calibrate the broker’s commission rates that would maximize the seller’s expected gain....