Cherbonnier, Frédéric and Lévêque, Christophe (2021) The impact of competition on expert's information disclosure: the case of real estate brokers. TSE Working Paper, n. 21-1255, Toulouse, France

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Competition can theoretically counter or reinforce tendency of experts to pass
biased information to customers. Using data from an online company connecting real estate brokers with clients who want to sell their properties, we show that more competition or lower opportunity to collude induce brokers to raise their initial price estimation by more than 3%. This is observed upstream, when experts appraise the property for sale. Competition partially prevents brokers from biaising downward evaluations, and is benecial to the client since it translates into a positive eect on listing and sale prices with no signicant eect on the time to sale.

Item Type: Monograph (Working Paper)
Language: English
Date: October 2021
Place of Publication: Toulouse, France
Uncontrolled Keywords: Information revelation, Competition, Price appraisal, Real Estate Bro-, kers
JEL Classification: D83 - Search; Learning; Information and Knowledge; Communication; Belief
L15 - Information and Product Quality; Standardization and Compatibility
L85 - Real Estate Services
R30 - General
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 27 Oct 2021 08:57
Last Modified: 03 Oct 2022 11:44
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