Information Sharing Across MLS Platforms and Housing Prices: Evidence from a Temporary Suspension of an Agreement

This paper examines the effect of information sharing agreements between Multiple Listing Service (MLS) platforms on the economic outcomes of listings. We present a theoretical model involving search and matching frictions that predicts that properties will trade at a price discount in the absence of information sharing. To test the model’s prediction, we capitalize on a temporary suspension in the sharing agreements between MLS platforms in South Florida. We find that listings by a broker that operates in an area where brokers from the other MLS platform also operate significantly (and hence a reliance on brokers from the other MLS platform), trade at a discount during the suspension period. The results also reveal both heterogeneous and liquidity effects. Overall, we highlight the role of sharing agreements in housing prices.