Date & Time：May 20, 2020 12:30- 14:00
Venue：Virtual Seminar
Speaker：Jubo Yan（Nanyang Technological University）
Abstract：
Intermediaries play an important role in the markets with asymmetric information by reducing the search friction and uncertainty for buyers and sellers. However, when conflict of interest arises, agents may not fully act on behalf of their clients. Using a unique data set of housing resale transactions and agent showing records from a major brokerage firm in China, we document brokerage agents’ steering behaviors induced by the “full 5& only” taxation scheme, and quantify the consequences of such steering on market outcomes in the housing market. Our results show that real estate agents do not always help consumers reduce information asymmetry but instead strategically promote the units that are attached with the “full 5& only” labels, as they offer higher expected commissions. The steering efforts lead to better sales performances of the labelled houses and are highly correlated with agent’s experience, ability and steering incentives. The buyers thus bear the welfare consequences from potential mismatch and the additional cost in acquiring the labelled units.
Speaker Biography：
Dr Jubo Yan is an assistant professor of economics at the School of Social Sciences, Nanyang Technological University. He received his Ph.D. degree from the Dyson School of Applied Economics and Management at Cornell University in 2015. His major research interests are behavioral economics and applied microeconomics. He employs both experimental method and second-hand data to answer policy related questions. Dr Yan has published in international journals like the Journal of Environmental Economics and Management, Journal of Organizational Behavior, Journal of Economic Behavior and Organization, among others.
