An analysis of affinity programs

the case of real estate brokerage participation

Authors

  • Danielle Lewis Department of Economics, College of Business Administration, Southeastern Louisiana University, Hammond, LA 70402, USA
  • Randy I. Anderson School of Business, Samford University, 800 Lakeshore Drive, Birmingham, AL 35229, USA
  • Leonard V. Zumpano Alabama Real Estate Research and Education Center, The University of Alabama, 149 Bidgood Hall, Tuscaloosa, AL 35486, USA

DOI:

https://doi.org/10.1016/S1057-0810(99)00042-6

Keywords:

Efficiency, Affinity programs, Real estate brokerage

Abstract

In this study, we examine the impact of affinity programs on the residential real estate brokerage market. The results indicate that affinity-participating firms employ more salespeople, operate more offices, are more likely to be franchised, and have more multiple listings service affiliations than their nonparticipating counterparts. We directly test for firm and industry efficiency using a Bayesian stochastic frontier technique, and find strong evidence that non-affinity firms are much more efficient at allocating and utilizing their resources. These findings cast concerns on the industry in light of the growth of affinity programs. © 2000 Elsevier Science Inc. All rights reserved.

Downloads

Published

1999-09-30

How to Cite

Lewis, D., Anderson, R. I., & Zumpano, L. V. (1999). An analysis of affinity programs: the case of real estate brokerage participation. Financial Services Review: The Journal of Individual Financial Management, 8(3), 183–197. https://doi.org/10.1016/S1057-0810(99)00042-6

Issue

Vol. 8 No. 3 (1999): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1999 JAI Press Inc.

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author(s) retain copyright and grant the Journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 International License that allows to share the work with an acknowledgment of the work's authorship and initial publication in this Journal.

This license allows the author to remix, tweak, and build upon the original work non-commercially. The new work(s) must be non-commercial and acknowledge the original work.