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| An Optimal Incentive System For Real Estate
Agents Author: Timothy E. Jares, James E. Larsen and Thomas S. Zorn Start Page: 44 Abstract: This article
presents an alternative system for selling real estate. It overcomes the well-known
deficiencies of the percentage commission system. In our system, the agent purchases the
property from the seller and simultaneously receives a put option. The put option gives
the agent the right to put the property back to the original owner. It is shown that this
system has many of the desirable properties of a dealer system, while avoiding some of the
problems that are inherent in that system. |
