ajaz_eco_204_2012_2013_chapter_16_Market_Power

Brokers like ms moranis who were outside the lepage

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Unformatted text preview: ens Real Estate, which plans to launch its brand in Canada this year. Back in the early 1980s, the dominant player in Toronto was A. E. Le-Page, which in 1984 merged with the real estate arm of Royal Trust to form Royal LePage, and became the country’s largest real estate brokerage. Brokers like Ms. Moranis, who were outside the LePage umbrella, but had clients who wanted to buy LePage properties, were for ced to make side deals with agents inside the company, trading commission. The MLS system at the time hadn’t really taken off. In CREA’s own words: “Brokers tended to use it as a system of last resort to sell properties they couldn’t sell on their own.” Consumers generally had to pay a larger commission for an MLS-listed property. 6 ECO 204 Chapter 16: Analysis of Firms with Market Power (this version 2012-2013) University of Toronto, Department of Economics (STG). ECO 204, S. Ajaz Hussain. Do not distribute. One of the key changes to the Canadian landscape was the arrival o...
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This document was uploaded on 01/19/2014.

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