Coase Colored Glasses

Sunday, January 15, 2006

Coase Colored Glasses

Realtors as cartel
Realtors exist to reduce transaction costs, which sounds like a nice market solution to a diffused information problem. But, the National Association of Realtors and their state affiliates have managed to turn their services into a cartel where they are able to set their pricces at 6% of the selling price. Freakonomics has a good chapter on whether or not you should use a realtor. Here is a recent post on their webpage on the topic.


At 7:56 PM, Blogger Spencer M. Taylor said...

Prof. Simmons, I just got the book Freakonomics for Christmas (can I use the word christian word "Christmas" on this website? I hope I'm not breaking any laws). I can't wait to start it. I have to finish The Fatal Conciet by Hayek first. I have 35 more pages to read.

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