140. See infra Chapter III.C. 141. Although this section reports a range of statistics that profess to determine "market share," this Report makes no effort to define an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL PROPERTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within urban areas. For example, within the Washington, DC urbane area, there is little or no competitors amongst buyers, sellers, and real estate agents across 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 Financial Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Industry, Realty Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], offered at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (comment). 149. Id. 150. REALOGY, REALOGY COMPANY OVERVIEW 4 (Dec - how to become a real estate developer. 2006), offered at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what are cc&rs in real estate. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms may have a larger than typical market share, however market shares are understood to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Realty One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Property 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, Bigger is Not Better: Brokerage and Time on the marketplace, 10 J.
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23, 27-28 (1995 ). The authors utilized a sample of 388 house sales in calendar year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Click here Portion Brokerage Commissions and Genuine Estate Market Performance," 17 JOURNAL OF THE AMERICAN REAL ESTATE 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 brand-new company designs in the realty brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably complimentary entry into the profession and into the property brokerage organization."). The ability of beginner entrants to bring in clients relative to more knowledgeable agents was not discussed at the Workshop http://timesharetracy.com/wesley-financial-group-review-2020/ and, likewise, is not attended to 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 Remark 208, at 5 (" An agent can acquire a broker's license, usually after having stayed in business for numerous years, and passing a broker's license examination. The specific requirements vary by state.").
One author has actually described the service that brokers supply as not merely a finished match of purchaser and seller, but rather "a completed deal at some level of service provided to the celebrations included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Housing Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these services "supplies the margin for nonprice competitors among brokers." Id. 164. As discussed in Chapter I of this Report, refunds are a meaningful component of rate competition in between brokers in states that do not prohibit rebates. Anti-rebate laws are talked about in more information in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See also id. at 55 (" [W] e found regional markets to regularly have commission modes at either 6 or 7 percent. These are the 'normal' modes for virtually all markets, no matter how they may vary from one another, and nationwide a really high percentage of real estate brokerage transactions occurred at a commission rate of one or the other.
The degree of rate harmony we found plainly is inconsistent with a market defined by the specific sort of energetic competitors typical in numerous other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than twenty years earlier, things really have not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of studies have argued that the uniformity of the commission rate throughout various homes and areas is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REALTY FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof provided is the near-uniformity of commission rates in an offered market. A typical argument is click here that the effort required to sell a home is not a direct function of the sales cost and that if there is not collusion among brokers, there must be, at the minimum, variation in commission rates across home 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 real estate brokerage market is substantially less competitive than it should be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would surely indicate that average charges would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to remain as the modal cost."); John C.
8, 2005) (noting "a relatively prevalent view that brokerage is not a competitive industry" based numerous perceptions, consisting of: (1) extreme commission rates that are "sticky down" even as innovation minimizes brokers' expenses; (2) commission rates are greater in the United States than in numerous other industrialized countries; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws limiting competitors; (4) NAR's effective lobbying of Congress to restrict banks from getting in the property brokerage company; and (5) NAR-imposed constraints on discount and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Modifications in the Airline Company Ticket Circulation Industry (July 2003) (discussing how Internet circulation lowered transaction expenses in the sale of airline tickets), readily available at http://www. gao.gov/ new - how much do real estate agents make a year. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Defense Info Needed on Broker's Website (May 2000) (going over how Web brokerages charge far less commission per trade on securities), 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 study examining commission rates in the United States and several other countries concluded that U.S.