In their Oct 2003 article, Can free entry be inefficient' Fixed commissions
             and social waste in the real estate industry Chang-Tai Hsieh, Enrico
             Moretti (2003) argue against removal of entry barriers in real estate
             industry as they notice inefficiency prevailing in the cities where number
             of real estate agents in relatively higher. In other words, they argue
             against the commonly held belief that there should be no barriers to entry.
             The author maintain that even though barriers to entry sound like a scary
             term to most economists, it must be borne in mind that free entry or
             relatively easy entry into any industry can lead to inefficiency and loss
             of productivity. This is most pronounced in the case of real estate
             industry where presence of higher number of real estate agents almost
             always leads to inefficient distribution of income. To understand this
             problem, we must first take into account the definition of economics or
             what is the real purpose of this science. Lionel Robbins gave us the most
             famous definition of economics when he said that, "Economics is the science
             which studies human behavior as a relationship between ends and scarce
             means that have alternative uses" (quoted in Stigler (1984, 301) This means
             economics is all about distribution of resources in such a manner that
             Entry to barriers are mostly erected to maximize profits and to maintain
             certain monopoly over prices and supply of goods and services. For this
             reason, entry barriers are viewed in a negative light and most economic
             gurus would argue against their existence, it is generally believed that
             while barriers to entry kills competition and leads to high prices. The
             control normally remains in the hands of few key players whop dictate the
             terms in the industry. However if we study the impact of too many players
             in a market due to lack of these barriers, we notice that non-existence of
             ...