Today's episode is about an industry that, like many industries, often talks about how competitive it is and how that competition is good for customers.

The free market is working, and I think the consumer is benefiting while still receiving professional representation.

But if you ask most economists, they have a different view of this industry.

It's just hard not to say, man, these prices seem way higher than they need to be.

This is an industry that most of us interact with rarely, but when you do, the stakes are high.

It's a really important decision financially, emotionally.

You need a little bit more handholding.

But is your hand being held or is it being forced?

I take great offense at that characterization.

Offense noted.

But also worth noting, the National Association of Realtors, the NAR, just settled an antitrust

lawsuit that requires it to pay hundreds of millions of dollars in damages and change

the way realtors charge their customers.

Today, on Freakonomics Radio, we speak with the president of the NAR as well as its chief economist.

The real estate profession is one of the most competitive out there.

It's almost like economic textbook definition of perfect competition.

And we hear from two other economists who don't see much competition, but instead, what looks

more like collusion. Okay, we all know how this thing works, wink, wink, and if we just don't rock

the boat too hard, we can keep it together. Consider the boat rocked. Starting now.

This is Freakonomics Radio, the podcast that explores the hidden side of everything, with your host, Stephen Dubner.

The National Association of Realtors, which is headquartered in Chicago, is the largest trade organization in America with more than 1.5 million members.

There are real estate agents who are not realtors with a capital R, but the NAR is where the action is.

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