Real estate agents have been found to keep their own homes on the market longer and sell their homes for more than comparable homes of the individuals they represent. This phenomenon is best described by which of the following concepts?

Question

​Real estate agents have been found to keep their own homes on the market longer and sell their homes for more than comparable homes of the individuals they represent. This phenomenon is best described by which of the following concepts?

Quizplus · Accepted Answer

This phenomenon is an example of moral hazard, as the real estate agents have information that the individuals they represent do not have, and they use this information to their advantage in the sale of their own homes. This creates a potential conflict of interest, where the agents may not act in the best interest of their clients. Adverse selection, availability bias, and time inconsistency do not accurately describe this situation.

​Real Estate Agents Have Been Found to Keep Their Own

Real Estate Agents Have Been Found to Keep Their Own