Keywords
search, intermediation, real estate
Abstract
We study intermediation in the housing market. Using data from an online platform used by real estate agents to generate leads, we identify exogenous intermediary attention arising from the quasi-randomized ordering of potential listings. Greater intermediary attention leads to an increased probability of listing with an agent and selling quickly, and a higher transaction price. The listing and transaction probabilities of neighboring properties decrease in intermediary attention. These results provide causal evidence supporting search theories of intermediation, contrast sharply with endogenous correlations, and indicate that agents in this market serve mainly to facilitate search rather than to reduce information asymmetries.
Original Publication Citation
What Problem Do Intermediaries Solve? Evidence From Real Estate Markets (2024) with Mark Garmaise and Taylor Nadauld, Review of Financial Studies
BYU ScholarsArchive Citation
Aiello, Darren; Garmaise, Mark; and Nadauld, Taylor, "What Problem Do Intermediaries Solve? Evidence From Real Estate Markets" (2022). Faculty Publications. 9127.
https://scholarsarchive.byu.edu/facpub/9127
Document Type
Peer-Reviewed Article
Publication Date
2022
Publisher
Review of Financial Studies
Language
English
College
Marriott School of Business
Department
Finance
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