International Comparisons of Real Estate E-nformation on the Internet

Abstract

How much information should brokers supply on a website? The Internet allows brokers to reduce the cost of providing information to potential buyers. However, brokers may risk disintermediation if they provide too much information. This paper presents a model of a broker’s choice of how much information to provide on a website. The model considers buyers’ tradeoffs between hiring a broker and gathering information on their own. It then investigates why real estate brokers in different countries provide different amounts of information on websites. Tests reveal that information provided on broker websites depends on the search cost of prospective buyers.