Skip to main content

Multiple Listing Service Subsidies and Economic Efficiency


In an earlier article in this journal, Sefton and Yavas (1995) concluded that subsidizing a monopoly multiple listing service (MLS) can be efficient when the curvature of the representative consumer's demand function leads to overshifting. This paper extends their analysis to a multiple-consumer demand model. It shows that, for the generalized demand configuration considered here, in general, there is no Pareto superior MLS subsidy supportable by nondiscriminatory MLS consumer taxes when the Pareto ranking is imposed without the Hicks–Kaldor compensation principle.

This is a preview of subscription content, access via your institution.


  • Sefton, M., and A. Yavas. (1995). “The Welfare Effects of a Subsidy to Multiple Listing Services,” Journal of Real Estate Finance and Economics 11 (July), 85–90.

    Google Scholar 

  • Varian, H. R. Microeconomic Analysis. 3rd ed. New York: Norton. 1992.

    Google Scholar 

Download references

Author information

Authors and Affiliations


Rights and permissions

Reprints and Permissions

About this article

Cite this article

TURNBULL, G.K. Multiple Listing Service Subsidies and Economic Efficiency. The Journal of Real Estate Finance and Economics 14, 365–370 (1997).

Download citation

  • Issue Date:

  • DOI:

  • multiple listing service
  • efficient subsidy