Brokers reduce inefficient resale because owners already pay for search
Evidence
One major function of a broker is to conduct an effective search for the buyer willing to pay the highest price when the value of a stone is uncertain. If that uncertainty exists, the original owner has every incentive to hire the broker to search the market. If that has been done, then the first purchaser for use will rightly conclude that hiring a second broker has a very low rate of return, given the search already undertaken by the broker for the original owner. — Lisa Bernestein, Opting out of the Legal System, 222
Categorization
- XREF: connects to: Wealthy merchants delegated market-place dealings to brokers to escape the common herd
Related
- Wealthy merchants delegated market-place dealings to brokers to escape the common herd (similarity 0.80)