Skip to main content
SpringerLink
Log in

The welfare effects of a subsidy to Multiple Listing Services

  • Published:
The Journal of Real Estate Finance and Economics Aims and scope Submit manuscript

Abstract

We show that the gain in consumer surplus resulting from subsidizing a Multiple Listing Service may exceed the cost of the subsidy. Thus a subsidy financed by taxing the consumer may be Pareto-improving. We give general conditions for this to hold.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anglin, P.M., and R. Arnott. “Residential Real Estate Brokerage as a Principal-Agent Problem,”Journal of Real Estate Finance and Economics 4 (1991), 99–125.

    Google Scholar 

  • Arnold, M.A. “The Principal-Agent Relationship in Real Estate Brokerage Services,”AREUEA Journal 20 (1992), 89–106.

    Google Scholar 

  • Benjamin, J.D., N.E. Coulson, and S.X. Yang. “Real Estate Transfer Taxes and Property Values: The Philadelphia Story,”The Journal of Real Estate Finance and Economics 7 (1993), 151–157.

    Google Scholar 

  • Besley, T. “Commodity Taxation and Imperfect Competition: A Note on the Effects of Entry,”Journal of Public Economics 40 (1989), 359–367.

    Google Scholar 

  • Federal Trade Commission.The Residential Real Estate Brokerage Industry. Volumes I and II, U.S. Government Printing Office: Los Angeles, 1983.

    Google Scholar 

  • Landsburg, S.E.Price Theory and Applications: Instructor's Edition. Chicago: Dryden, 1989.

    Google Scholar 

  • Miceli, T.J. “The Multiple Listing Service, Commission Splits, and Broker Effort,”AREUEA Journal 19 (1991), 548–566.

    Google Scholar 

  • Stern, N. “The Effects of Taxation, Price Control and Government Contracts in Oligopoly and Monopolistic Competition,”Journal of Public Economics 32 (1987), 133–158.

    Google Scholar 

  • Wu, C., and P.F. Colwell. “Equilibrium of Housing and Real Estate Brokerage Markets Under Uncertainty,”AREUEA Journal 14 (1986), 1–23.

    Google Scholar 

  • YavaŞ., A. “Economics of Brokerage: An Overview,”Journal of Real Estate Literature, (1994), forthcoming.

  • Yinger, J. “A Search Model of Real Estate Broker Behavior,”American Economic Review 71 (1981), 591–605.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Econometrics and Social Statistics, University of Manchester, M13 9PL, Manchester, England

    Martin Sefton

  2. Smeal College of Business, Pennsylvania State University, 10003, University Park, PA

    Abdullah Yava§

Authors
  1. Martin Sefton
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Abdullah Yava§
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sefton, M., Yava§, A. The welfare effects of a subsidy to Multiple Listing Services. J Real Estate Finan Econ 11, 85–90 (1995). https://doi.org/10.1007/BF01097939

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01097939

Key words

Search

Navigation