Information asymmetry in real estate transactions can significantly impact the negotiation process. Real estate agents, having more knowledge about the housing market, can use this to their advantage. They may use coded language or hints to manipulate the market, encouraging owners to sell faster or passing along information to other agents. This can lead to an imbalance in the negotiation process, where one party has more information than the other, potentially leading to unfair outcomes.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
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