140. See infra Chapter III.C. 141. Although this section reports a variety of data that purport to measure "market share," this Report makes no effort to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REAL ESTATE MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cities. For instance, within the Washington, DC city, there is little or no competitors 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., Elder Economist, National Association of Realtors, Discussion 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], available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY ORGANIZATION INTRODUCTION 4 (Dec - how to become a real estate developer. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to choose a real estate agent for selling. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms might have a larger than typical market share, but market shares are known to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Realty One, Inc., 173 F. 3d 995, 1003 (sixth Cir. 1999). 153. Mid-America Realty 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 premises, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Larger 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 fiscal year 1991 from the several listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Genuine Estate 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, however, this is not always the case with respect to the entry of new organization models in the property brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly totally free entry into the occupation and https://www.instagram.com/accounts/login/?next=/wesleyfinancialgroupllc/%3Fhl%3Den into the genuine estate brokerage organization."). The ability of amateur entrants to attract customers relative to more experienced agents was not discussed at the Workshop and, also, is not addressed in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can acquire a broker's license, normally after having actually stayed in business for several years, and passing a broker's license test. The specific requirements vary by state.").
One author has actually described the service that brokers offer as not simply a finished match of buyer and seller, but rather "a finished transaction at some level of service supplied to the parties included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "supplies the margin for nonprice competitors amongst brokers." Id. 164. As discussed in Chapter I of this Report, refunds are a meaningful component of price competition in between brokers in states that do not restrict rebates. Anti-rebate laws are gone over in more information in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e discovered regional markets to regularly have commission modes at timeshare rent by owner either 6 or 7 percent. These are the 'normal' modes for practically all markets, despite how they may vary from one another, and nationwide a really high portion of realty brokerage deals occurred at a commission rate of one or the other.
The degree of rate uniformity we found plainly is inconsistent with a market defined by the particular sort of vigorous competition common in numerous other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than 20 years ago, things actually have not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
REALTY RES. 187, 187 (2001) (" A variety of studies have actually argued that the harmony of the commission rate throughout different residential or commercial properties and regions is an indication of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion in between brokers through the [MLS] The main evidence presented is the near-uniformity of commission rates in a provided market. A common argument is that the effort needed to sell a house is not a linear function of the sales rate which if there is not collusion among brokers, there ought to be, at least, variation in commission rates throughout house price varieties within a provided market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any standard, the realty brokerage market is considerably less competitive than it must be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would definitely indicate that average fees would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to stay as the modal charge."); John C.
8, 2005) (noting "a fairly extensive view that brokerage is not a competitive industry" based several perceptions, consisting of: (1) excessive commission rates that are "sticky downward" even as technology decreases brokers' expenses; (2) commission rates are greater in the United States than in numerous other industrialized countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competition; (4) NAR's successful lobbying of Congress to restrict banks from going into the real estate brokerage service; and (5) NAR-imposed constraints on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Ticket Distribution Industry (July 2003) (going over how Web circulation lowered transaction expenses in the sale of airline company tickets), available at http://www. gao.gov/ new - how long does it take to get your real estate license. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor https://guardianlv.com/2019/04/wesley-financial-group-frees-hostages-from-timeshare-bondage/ Protection Details Needed on Broker's Website (May 2000) (discussing how Web brokerages charge far less commission per trade on securities), offered 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 Comment 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study examining commission rates in the United States and several other nations concluded that U.S.