Social Affiliations and Performance of Experts in Organizations

While many studies have emphasized the efficiency and cost benefits from transacting within social structures, it remains unclear the extent to which experts and firms can create and appropriate value when transacting with social affiliates, especially in the absence of repeat transactions. I investigate this question using a novel approach that pairs data from the Utah Multiple Listing Service with hand-collected data on geographically assigned LDS (Mormon) congregation boundaries. By identifying listings for which real estate agents and home sellers share a common church affiliation, I explore the impact of affiliations on agent performance and the tactics they employ to appropriate value. I find that agents sell comparable homes for 2% more when listing for affiliates without significantly increasing time on market, and exert more care and effort on transactions. I also find that listing for affiliates provides agents access to additional tactics in selling homes that may be used to appropriate value. ...