Im Zuge der politischen Debatten zur Entlastung der angespannten Wohnungsmärkte in Deutschland wird auch die Einführung des Bestellerprinzips bei Immobilienkäufen diskutiert. Dies bedeutet, dass künftig nur derjenige die Provision bei einer Transaktion zahlt, der diese beauftragt. In aller...

This article reviews research on the economics of information in real estate. It covers equity investment in private and public markets and intermediation by brokers. The review shows how, by examining the nature and extent of information frictions in these important markets, research has...

When a principal’s monitoring information is private (non-verifiable), the agent should be concerned that the principal could misrepresent the information to reduce the agent’s wage or collect a monetary penalty. Restoring credibility may lead to an extreme waste of resources - the so-called...

This paper analyzes incentives for cronyism in politics within an agency problem model with moral hazard. The analysis focuses on the institutional features, which define contractual and appointment procedures within political organizations. The institutional framework does not allow explicit...

In several strategy documents, the Department of Defense has suggested that it may experiment with public-private partnerships (P3s) as catalysts for innovation. This policy is misguided. P3s may prove especially disappointing if they are merely a neologism for a continuation of the same old...

There often exists a supermajority rule that enables the minority party to delay or prevent a vote on a bill. I construct a two-period model consisting of a representative voter, self-interested parties, and a media outlet. In the model, the majority party has an incentive to misrepresent the...

Various state legislatures have passed a law that prohibits transgender individuals from using certain public toilets. The legislation has been controversial. The Supreme Court has agreed to place this issue on its docket (Gloucester County School Board vs. G.G.). This article summarizes that...

We analyze a two-election political agency model with moral hazard and adverse selection in which candidates have observable traits such as job qualifications that help voters to imperfectly predict politicians' types. Candidate's traits can help voters select good types of politicians. However,...

This article responds to the question: "Capitalism: What has gone wrong, what needs to change and how to fix it" for a special volume on capitalism in Oxford Review of Economic Policy. Debates on capitalism get muddled by blind spots about essential institutions, particularly effective...

The North Carolina legislature passed a law that prohibits transgender individuals from using certain public toilets. The legislation has been controversial. Some entertainers have stated they will not hold concerts in North Carolina until the law is repealed. Some corporations have been...