Social Networks and the Success of Market Intermediaries: Evidence from the US Residential Real Estate Industry

We examine the roles of market intermediaries in brokering connections among otherwise disconnected social networks. Market intermediaries are usually thought of as simply bringing together buyers and sellers with whom they have weak ties. However, intermediaries may also connect principals with other professionals who can provide assistance with the transaction. Because they are involved in repeated transactions, market intermediaries generally have strong ties with such professionals.