IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Agents and Brokers as Intermediaries: Their Regulation in Germany

Listed author(s):
  • Henning Curti

    (University of Hamburg)

Registered author(s):

    Most markets are characterized by imperfections, mostly market power and limited information. Under these circumstances, intermediaries like real estate agents and insurance brokers play an important role in the economy by facilitating exchange between third parties. As specialized entities they can transmit information, thereby lessening information asymmetries between market participants and can thus enhance the functioning of markets. This special role allows for opportunistic behavior by intermediaries, though. As long as the parties can write enforceable contracts that cover the relevant aspects of the intermediaries behavior, legal regulation is not necessary. In this paper it will be shown, though, that contracts are only partially able to solve possible principalagent problems and that the current legal rules in Germany are inefficient as they can not sufficiently control possible opportunistic behavior. A system of legal rules for intermediaries is sketched, taking into account that severe informa-tional asymmetry is more likely to arise if transactions are infrequent and learning does not take place.

    If 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.

    File URL:
    Download Restriction: no

    Paper provided by Berkeley Electronic Press in its series German Working Papers in Law and Economics with number 2003-1-1069.

    in new window

    Date of creation:
    Handle: RePEc:bep:dewple:2003-1-1069
    Note: oai:bepress:
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bep:dewple:2003-1-1069. See general 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: (Christopher F. Baum)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.