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A Note on Agency Size and Brokerage Commission Splits

Author: James R. Frew, G. Donald Jud, and Willard McIntosh

Start Page: 287
End Page: 291
Volume: 8
Issue Number: 2
Year: 1993
Publication: Journal of Real Estate Research

Abstract: This paper develops a model to explain the commission split among cooperating real estate brokers operating within a multiple listing service where individual agencies are free to negotiate. The paper provides theoretical and empirical evidence that suggests that the amount of the total commission paid to a cooperating broker is a negative function of the size of the agency that lists the property for sale.

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