Study On The Principal-agent Relationship Between The Real Estate Developer And The Agent

There is a long history of development in foreign real estate agents, and both in Taiwan and Hong Kong still has been with 30 years. However, mainland's real estate agent market got a later start. Real estate developers employ agents for sale and planning ,to a certain extent, this can be more efficient. Nevertheless, that will lead to the situation of asymmetric information between the property developers and real estate agents, which may result in low efficiency in the market caused by moral hazard problems.This dissertation introduces the concept and the chief content of principal-agent theory firstly. Then according the main ideology of principal-agent theory and the characteristic of real estate ,we find out 3 differences between the real estate principal-agent model and The traditional principal-agent model : 1,The income function of real estate developer related to the quantity of the building. 2,Different results exist between real estate developer and the agent in evaluation of the building. 3,The modulus of the effort of agent and the quantity of the building to the income function changing with the market developing. Based on them, we construct an principal-agent model on the foundation of this three differences. After this , we discussed explicit incentive mechanism design in different situation for example , in the situation of real estate developer and real estate agent have the same assess of the quality of the real estate, and in the situation of real estate developer and real estate agent have the different assess of the quality of the real estate , and so on . Then we discuss the contract design based on agents market and the relative performance . To the converse selection , we use fuzzy comprehensive evaluation on agent . so that it can force the agent whose ability is low off the market . At the final part of this research some innovation and deficiencies of the article were pointed out.