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Incentives in "Freakonomics"
by Dirk Mateer `

Does your real estate agent have your best interest in mind? This scene shows why real estate agents have a strong incentive to sell your house at any reasonable price. For them the big incentive is to close a sale. For instance, if you sell your house for $200,000 a 6% commission is worth $12,000. If you sell the house for $195,000, the real estate agent still makes $11,700 which is lot more than they will make if the deal does not close. This is one of the best examples of thinking about the power of incentives.

This Commentary is related to the following Clips:
Incentives in "Freakonomics" by Directed by: Heidi Ewing, Alex Gibney, Seth Gordon, Rachel Grady, Eugene Jarecki, Morgan Spurlock, Produced by: Chad Troutwine, Chris Romano, and Dan O'Meara (2010) Does your real estate agent have your best interest in mind?