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

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  • Stephen L. Locke

    (Western Kentucky University)

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.

Suggested Citation

  • Stephen L. Locke, 2020. "Paying for a Name? Comparing the Performance of Franchised Real Estate Brokerage Firms," The Journal of Real Estate Finance and Economics, Springer, vol. 61(1), pages 115-128, June.
    • Handle: RePEc:kap:jrefec:v:61:y:2020:i:1:d:10.1007_s11146-019-09702-2
    DOI: 10.1007/s11146-019-09702-2
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    References listed on IDEAS

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