140. See infra Chapter III.C. 141. Although this area reports a range of stats that profess to determine "market share," this Report makes no attempt to define a pertinent antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL PROPERTY MARKET COMPETITORS: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within city locations. For example, within the Washington, DC city, there is little or no competition among purchasers, sellers, and property agents throughout the micro-markets of Montgomery County, MD, Fairfax County, VA, and southwest Washington, DC). 143. Yun, Tr. at 220. 144.
145. Lawrence Yun, Ph. D., Senior Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Realty Market, Realty Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY BUSINESS INTRODUCTION 4 (Dec - how to buy commercial real estate. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is redlining in real estate. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some companies may have a larger than normal market share, but market shares are understood to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Real Estate Co. v. Iowa Realty Co., No. 4:04- CV-10175, 2004 WL 1280895, at * 8- * 9 & n. 5 (S.D. Iowa 2004), rev 'd on other grounds, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Larger is Not Better: Brokerage and Time on the Market, 10 J.
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23, 27-28 (1995 ). The authors used a sample of 388 home sales in fiscal year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Genuine Estate click here Market Performance," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As explained infra, nevertheless, this is not always the case with regard to the entry of new organization models in the genuine estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively free entry into the occupation and into the realty brokerage company."). The capability of novice entrants to attract customers relative to more experienced agents was not gone over at the Workshop and, similarly, is not dealt with in this Report. 158. Yun, Tr.
159. Yun Discussion, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Comment 208, at 5 (" An agent can get a broker's license, normally after having actually been in service for numerous years, and passing a broker's license exam. The specific requirements vary by timeshare exit com state.").
One author has explained the service that brokers provide as not merely a finished match of purchaser and seller, but rather "a completed transaction at some level of service provided to the parties involved." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competition and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers provide these services "provides the margin for nonprice competition amongst brokers." Id. 164. As talked about in Chapter I of this Report, refunds are a significant part of cost competition between brokers in states that do not restrict refunds. Anti-rebate laws are gone over in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e discovered local markets to regularly have commission modes at either six or 7 percent. These are the 'regular' modes for virtually all markets, no matter how they may differ from one another, and nationwide a very high portion of realty brokerage transactions happened at a commission rate of one or the other.
The degree of rate uniformity we found plainly is inconsistent with https://web.nashvillechamber.com/Real-Estate-Agents-and-Brokers/Wesley-Financial-Group,-LLC-21149 a market identified by the particular sort of energetic competition typical in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years ago, things actually have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was completed and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of studies have actually argued that the harmony of the commission rate across various homes and areas is an indicator of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion in between brokers through the [MLS] The primary evidence provided is the near-uniformity of commission rates in a provided market. A common argument is that the effort needed to offer a house is not a direct function of the sales price and that if there is not collusion amongst brokers, there should be, at least, variation in commission rates across house price ranges within a provided market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any requirement, the property brokerage market is significantly less competitive than it ought to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would certainly imply that typical fees would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to remain as the modal cost."); John C.
8, 2005) (noting "a fairly extensive view that brokerage is not a competitive industry" based a number of understandings, including: (1) extreme commission rates that are "sticky down" even as innovation minimizes brokers' expenses; (2) commission rates are higher in the United States than in numerous other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's effective lobbying of Congress to forbid banks from going into the realty brokerage organization; and (5) NAR-imposed restrictions on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Modifications in the Airline Company Ticket Distribution Industry (July 2003) (talking about how Web distribution decreased transaction costs in the sale of airline tickets), offered at http://www. gao.gov/ new - how to get started in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Protection Info Needed on Broker's Web Websites (May 2000) (talking about how Web brokerages charge far less commission per trade on securities), readily available at http://www.
items/gg00043. pdf. 169. See Hahn, Tr. at 89; American Bankers Association, Public Remark 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study examining commission rates in the United States and numerous other countries concluded that U.S.