Information asymmetry in real estate can significantly affect the pricing of properties. Real estate agents, having more knowledge about the market, can use this to their advantage. They may use coded language or hints to manipulate the market, causing owners to sell faster or adjust their prices. This can lead to properties being sold at prices that may not accurately reflect their true market value.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
View summary