Monday, November 22, 2010

Study: No Reason to Pay Realtor Commissions When Selling a House - It's Your Money - TIME.com


There's an assumption that the 6% typically paid in realtor commissions on a home sale is worth it because the seller will command a higher price than if he'd gone the "for sale by owner" route. But a trio of academics who researched years of home sales says that this assumption is false. In fact, they discovered that owner sellers got higher sales prices than owners who involved—and paid a commission to—real estate agents.
One of the researchers, Aviv Nevo, a marketing professor at the Kellogg School of Management, econ professor at Northwestern, offers this main eye-opening conclusion:
"Our key finding is that Realtors do not offset the cost of their commission; they do not get you a higher price."

http://goo.gl/NF62k

Wednesday, November 03, 2010

The Myth of the Rational Voter: Why Democracies Choose Bad Policies

Caplan asserts voters are not simply ignorant but irrational, and this is predicted by  economic theory. Voting is not like shopping - it is more like making use of a commons, because the costs of a "bad" vote are borne by the public at large, and the chance of an individual casting the deciding vote is tiny. Therefore, people will vote for what makes them feel good without bothering to find out whether it really is good.





Amazon.com: The Myth of the Rational Voter: Why Democracies Choose Bad Policies

www.amazon.com
Amazon.com: The Myth of the Rational Voter: Why Democracies Choose Bad Policies