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Paying for a Name? Comparing the Performance of Franchised Real Estate Brokerage Firms

  • Stephen L. LockeEmail author
Article

Abstract

This paper compares the relative performance of franchised and independent real estate brokerage firms. One problem that arises when comparing the performance of two different brokerage types is that agents may self-select into a particular type. The empirical methods used control for potential self-selection by using within-agent variation in franchise affiliation for agents who have worked for both types of brokerage firms. The results suggest that agents self-select into particular real estate brokerage types and firms. Thus, failing to account for self-selection can lead to substantial bias.

Keywords

Real estate Franchising Self selection Housing 

Notes

Acknowledgments

I want to thank Glenn Blomquist, Frank Scott, Adib Bagh, Bill Hoyt, and Karen Blumenschein for all of their helpful comments and suggestions.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of EconomicsWestern Kentucky UniversityBowling GreenUSA

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