Diffused effort, asset heterogeneity, and real estate brokerage

We generalize the classic Williams (1998, Review of Financial Studies, 11, 239–280) brokerage model by introducing diffused effort and asset heterogeneity. The term “diffused effort” refers to fact that an agent can cross-utilize spending on one listing another . One counterintuitive finding in Williams' paper is absence agency problem As a special case our model, we recover problem. demonstrate positive externality due show it depends agent's inventory size. Hence, there trade-off between agents' committed existing listings expanding network size soliciting new listings.