The Ethics In The Business Of Romanian Real Estate Agents
AbstractThe paper presents an analysis of the main ethical aspects concerning the Romanian real estate intermediation sector. The analysis tries to evaluate the true utility of real estate agents’ services and to assess the potential negative effects of an unethical behavior for the clients. In Romanian real estate market, there are at least three issues that endanger the business ethics of intermediaries. First, as the prices increase very fast, the transactions involve larger and larger amounts of money that attract entrepreneurs with weak intrinsic ethical standards. Very often, they fail to understand the instrumental value of business ethics too. Thus, instead of building a reputation in the market they prefer an immediate gain. Secondly, the real estate brokerage is poorly regulated in Romania. According to the motto “if not forbidden, it's permitted”, the real estate agents adopted very lax ethical standards. The third factor is the deficit of public information regarding the real estate market and the activity of real estate agents. The press usually reproduces the views of leading real estate agents, instead of providing authentic investigations of their services. The main conclusion is that there is evidence that the Romanian real estate agents try to maximize their profits by manipulating the economic environment rather than providing valuable services for their clients.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.
Volume (Year): 10 (2008)
Issue (Month): 23 (February)
business ethics; real estate agent; rent-seeking; reservation price; moral hazard;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valentin Dumitru).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.