Talk:Contingent commissions

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I have a hard time seeing how contingent commissions "prevent an undue conflict of interest between the wholesaler and the broker", and how it relates to the tragedy of the commons, even with the explanation provided.

• The explanation talks about mortgage brokerage, while the preceding paragraph asserts the term contingent commissions is used primarily in the insurance brokerage industry. The scenario when a broker hooks up a lender with numerous bad lender is to my senses not the same thing as a tragedy of the commons, per se. In the insurance industry there certainly are buyers who are "bad" (or high) risk, but they simply get to pay a higher premium.
• Contingent commissions appear to introduce a conflict of interest between the broker and the buyer, in that the broker is incentivised to select the seller who pays him the best contingent commission.

I suggest removing the second paragraph, but await some comments before I do it myself. --CodeGeneratR 23:06, 18 May 2005 (UTC)

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Didn't see any comments to the above, so I re-wrote the article. Much of the added information is covered in the Reuters article. More sources would be nice. --CodeGeneratR 12:44, 27 May 2005 (UTC)