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| Market Structure in the Residential Real
Estate Brokerage Market Author: Fred A. Forgey, Walter E. Mullendore, and Ronald C. Rutherford Start Page: 107 Abstract: This study provides
empirical evidence regarding brokerage firm concentration in a local market multiple
listing service setting over the year 1992-1995. To evaluate the level of brokerage firm
concentration in this market, Gini Coefficients, Herfindahl-Hirschman Indices and
Concentration Ratios for each year of the study period are calculated. Our results
indicate that for firms responsible for listing properties, firm concentration has not
varied substantially over the four-year study period. However, for those firms that were
responsible for actually selling properties, firm concentration has decreased over the
study period. This finding tends to indicate that the MLS now provides greater exposure to
a wide variety of sales firms, therefore leading to a higher level of competition with a
lower level of concentration for selling firms in this local market. |
