Asymmetry Of Information In China's Real Estate Market And Government Regulation

This paper applies related theories in information economics, regulation economics and neo-public administration. It first discusses the present situation of China's real estate brokerage market, then selects several typical cases to analyse the existing problems concerning asymmetry of information in China's real estate brokerage market from four prospective: asymmetry of information in principal-agent, asymmetry of information in commodity attribute, asymmetry of information of commodity's undivided rights and interests, and asymmetry of information of commodity's other related rights.Based on the above discussion, and after borrowing advanced experience in real estate market regulation from developed countries, the paper points out that the Chinese government should strengthen its regulation on asymmetry of information in China's real estate brokerage market and proposes four suggestions: first, the government should strengthen laws and regulations in real estate industry; secondly, the government should optimize the managing system for real estate agents; thirdly, the government should guide and standardize real estate market; fourth, the government should guild Non-Pro fit Organizations to play their role in the regulation of real estate market.