Brokerage Pricing Under Competition
J. OF URBAN ECONOMICS
Posted: 26 Jun 1998
Abstract
This paper reexamines the popular assumption that real estate commissions are fixed over time. It shows how the competitively determined commission rate responds to changes in the housing market and broker cost conditions. One testable implication is that competition promotes counter-cyclical changes in the commission rate. The empirical analysis of commission rate determinants using data covering an entire urban housing market through its downturn and expansion phases reveals the counter-cyclical movement in commission rates predicted by the competitive model.
JEL Classification: R32
Suggested Citation: Suggested Citation
Sirmans, C. F. and Turnbull, Geoffrey K., Brokerage Pricing Under Competition. J. OF URBAN ECONOMICS, Available at SSRN: https://ssrn.com/abstract=9081
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.